Procurement

All imported medicines in Tanzania are currently procured and distributed by 291 local private wholesalers. The wholesalers deliver to public health facilities through the MSD competitive public tendering process and to private retail pharmacies and health facilities through direct private procurement processes. Procurement of locally produced essential medicines is also undertaken by the wholesalers together with MSD. Public procurement is done on a competitive basis without any special treatment and or discrimination against entirely private companies and those in which the government holds 40% shares. Less than half (30%-40%) of locally produced essential medicines are marketed directly to local wholesalers, private retail pharmacies and healthcare facilities.

Tenders

Tanzanian bidders enjoy preferential treatment when the Tanzanian government issues a tender, and then only need to comply with Tanzanian Good Manufacturing Practices (GMP) standards set by the TFDA. The MSD runs the tenders and gives a 15% preferential treatment for national suppliers — both local producers and wholesalers. However, allocation of public funds to procure essential medicines for the public sector are less than US$1 per capita (in the 2005/6 Fiscal Year). Though public expenditure on essential medicines has been increasing there is also a counter-acting growing need for medicines due to population growth and a higher disease burden[1].

[1]Ibid., pp.10-12.