Harare, Zimbabwe – The National Pharmaceutical Company (NATPHARM), Zimbabwe’s sole entity responsible for the procurement and distribution of medicines, is facing severe financial distress, necessitating an immediate capital injection to sustain its critical mandate. This critical situation was brought to light by Aspect Maunganidze, the Secretary for Health and Child Care, during his testimony before the Health and Child Care Portfolio Committee.
Maunganidze informed legislators that NATPHARM’s current financial instability demands urgent intervention. “NATPHARM is currently not financially sound to deliver its mandate and there is a need for some form of capitalization at this stage,” he stated, emphasizing the gravity of the situation.
In response to this pressing need, the Ministry of Health and Child Care has already initiated efforts to secure emergency funding from the Treasury. “The ministry has taken action to mobilize funds through Treasury for an immediate emergency release of US$10 million, which we think would allow for immediate medicines to replenish stock,” Maunganidze added, highlighting the immediate steps being taken to address the shortage.
The financial strain on NATPHARM is further compounded by its struggle to meet obligations to key suppliers. The company currently owes approximately US$7.5 million to two major contractors, IntraFAMO and Clean Planet.
As a 100% state-owned enterprise, NATPHARM’s role in the procurement, warehousing, and distribution of essential medicines and medical supplies to public health institutions across the nation is indispensable. Its operational viability is therefore paramount to the effective functioning of Zimbabwe’s healthcare delivery system.
Maunganidze further disclosed that NATPHARM’s financial performance in 2025 fell short of projections, recording a total revenue of US$25.5 million against an anticipated US$36.2 million. While handling income slightly exceeded expectations at US$9.7 million (against a budgeted US$9.1 million), sales revenue reached US$15.8 million.
However, the entity is significantly burdened by liabilities and operational inefficiencies. “Unfortunately, it has got a total debt of US$1.1 million. There is expired stock which was written off in 2025 of about US$3 million,” Maunganidze revealed. Internal assessments suggest that nearly 80% of this expired stock could have been prevented with improved systems and strategic planning.
Compounding these financial woes, the Ministry of Health also reported that the availability of essential medicines in public health institutions remains below acceptable benchmarks. “The ministry expects that 50% of its institutions should at least be well stocked on tracer medicines. Currently, our performance is at about 47%,” said Maunganidze.
Tracer medicines, alongside the Vital, Essential, and Non-essential (VEN) classification system, serve as crucial metrics for evaluating the availability of critical drugs and the overall performance of the supply chain within health facilities. Maunganidze noted that NATPHARM’s performance on the VEN system currently stands at 65%, falling below the minimum acceptable threshold of 70%. “We are generally below the levels on both the tracer medicines and on the VEN for us to be supplying medicines adequately for our institutions,” he concluded, underscoring the systemic challenges facing the nation’s pharmaceutical supply chain.
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