Role of Local Manufacturers in Producing Essential Malaria Commodities: Nigeria and Uganda Case Studies

While the production capacity of local manufacturers in malaria-endemic countries like Nigeria and Uganda is increasing, most of the supply of medicines, insecticide-treated bed nets and other anti-malarial commodities is currently imported from the international market. Taxes and tariffs, among other charges, are imposed on these goods in an effort to protect local industries and to raise revenue. But revenues raised from these import charges are relatively low so reducing tariffs is seen as a positive strategy to lower the cost of imported commodities for expanding local access. Local industries, however, view tariff reduction unfavorably, since lower tariff rates compel them to compete against international producers who may be better positioned to provide better-quality or lower-priced goods.

Because local manufacturers must often pay import duties on finished and intermediate goods in addition to raw materials used to produce anti-malarial commodities, they feel disadvantaged. In relation to international producers, they also must contend with higher production costs, domestic taxes, and low access to financial and technical capital. All of these factors have direct implications on their capacity to adopt innovation and achieve competitiveness. Therefore the aim of this presentation is to examine policy recommendations that are designed to help local manufacturers build industrial capacity and enhance supply chains for increasing local access to anti-malarial commodities. Policy recommendations are based on findings from case study evidence gathered in Nigeria and Uganda.