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Understanding Supply Chain In Zimbabwe's Pharmaceutical Industry

  • bryanqalekahle
  • Mar 29
  • 5 min read
Drug Manufacturing
Drug Manufacturing

Zimbabwe's public and private pharmaceutical sector faces a significant challenges in managing supply chain, particularly in maintaining consistent inventory levels. This is evident as reported in an article published by The Herald describing the impact on public health , in particular how the shortage of drugs such as oxytocin impacts pregnant related mortality and the shortage in a combination of rifampin, isoniazid, ethambutol, pyrazinamide affects the effective treatment of TB patients.

These challenges are brought about as a result of frequent stockouts, unpredictable demand due to lack of aggregated holistic data and supply chain inefficiencies further exacerbated by a highly volatile, uncertain, complex and ambiguous economic environment.

In order to establish and maintain a resilient healthcare system , having reliable access to medication, including means to production is crucial for patient care and overall healthcare quality , especially when it comes to essential medications that treat diseases and conditions with the highest prevalence within the country and continent. Given the environment we are in inventory management efficiency is even more critical.


Objective: Is to identify and address the operational challenges related to supply chain and stockouts in Zimbabwe's private sector pharmacies, with the intended outcome to provide practical insights and solutions to improve and plug drug shortages within the system.


Zimbabwe is facing a serious shortage of medicines and drugs, leading to a crisis, particularly at lower-level healthcare facilities. Health and Child Care Minister Douglas Mombeshora highlighted that public hospitals do not have enough drugs to last even a month, leaving patients dependent on private pharmacies where prices are prohibitively high. The ministry requested US$129 million for 2023, but the Treasury allocated only US$52 million, creating a significant funding gap. The ministry requires approximately US$17 million worth of medicine per month to meet the country's needs. This shortage has left many patients stranded, unable to access affordable healthcare. Local pharmaceutical companies are not yet fully equipped to meet the country's needs, resulting in most drugs being imported. However, the government is prioritizing the capacitation of local manufacturers, with the belief that expanding production capabilities will significantly reduce drug shortages. In a 2018 report, a citizen named Pretty Mandaza had to travel extensively to find TB drugs, impacting her treatment as missing doses required restarting the entire course. These comments by the Zimbabwean Deputy Minister on September 16, 2024, underscore the urgent need for improved supply chain management and increased funding to address the healthcare crisis.


Chronic Underfunding  

The Ministry of Health and Childcare requested for US$129 million for 2023 but received US$52 million from the Treasury. This significant funding gap which translates to 9% of national budget as compared to WHO's recommendation of 15% limits ability to procure essential medicines and equipment.


Supply Chain Disruptions 

Local pharmaceutical companies are not fully capacitated to meet the country's drug needs and have limited ability to the drugs that can be manufactured locally due to various reasons. This creates a reliance on imports making the supply chain vulnerable to international market fluctuations and logistical challenges, coupled with limited supply of foreign currency allocated to sourcing these drugs leads to supply chain disruptions.


Administrative And Logistical Challenges

The systems currently in use for inventory tracking are not efficient to give a whole picture beyond a particular facility, as a result there are many stockouts and wastages. Without real-time monitoring and predictive analytics, pharmacies struggle to maintain optimal inventory levels and anticipate demand accurately. Many healthcare facilities lack basic amenities like electricity making it difficult to store and manage medications properly.



Workforce Shortages

There is an exodus of healthcare professionals going abroad which has created severe workforce shortages particularly in the rural areas, the remaining healthcare workforce is often overwhelmed leading to inefficiencies and reduced patient care quality.


Solutions

Demand Forecasting:  

With the use of predictive analysis, based on historical data, statistical and machine learning algorithms to forecast future demand and establish trends for medication, we can better predict the likely need of drugs specific to a particular season, geographical location thereby reducing the risk of stockouts and overstocking. These results in data useful in strategic decision thinking in terms of knowing which drugs to prioritise and which drugs that need to be manufactured locally based on accurate demand. This also helps incorporate trends and external factors such as disease outbreaks to refine forecasts.


Optimising Stock Levels:

There is need to implement continuously track inventory levels aggregated at national level , so as to identify and analyse usage patterns such as seasonal trends, geographical trends and other external factors to recommend optimal stock levels. This will enable adjusted reorder points and quantities based on real-time data and predictive models, ensuring consistent availability of medications , whilst minimising holding costs.


Reducing Waste and Costs:

The use of analytics as mentioned above will help identify medications with low turnover rates and adjust inventory strategies accordingly. The data driven approach will enhance operational efficiencies and avoid wastage of resources that can be put to better use.


To ensure a constant supply of drugs that need to be imported , there is need to invest in strategic partnerships or joint ventures with foreign pharmaceutical manufacturers , this ensures a stable supply of essential drugs and also provide a source of foreign capital that can be used to boost local healthcare infrastructure. Equity investments in capacitated pharmaceutical companies to gain influence over production and pricing strategies to ensure priority access to critical medications.


Investing in building and upgrading local manufacturing through a decentralised system ensures sufficient production of essential medications, reducing imports and fostering regional self-sufficiency.

There is need to simplify and establish regulatory frameworks that support local manufacturing and ensuring compliance with international quality standards.


Implementing an e-procurement system to streamline the procurement process will enhance transparency, and reduce administrative costs.


In conclusion, addressing the severe shortages of essential medicines in Zimbabwe's healthcare system requires a multifaceted approach. By leveraging predictive analytics, pharmacies can accurately forecast demand and optimize inventory levels, reducing stockouts and wastage. Implementing end-to-end procurement strategies, such as currency hedging, diversified sourcing, and investing in local manufacturing, can mitigate the impact of foreign currency allocation and enhance self-sufficiency. Practical steps, including adopting e-procurement systems and building strong supplier relationships, further streamline procurement processes and improve efficiency. These combined efforts not only ensure the consistent availability of medications but also enhance overall operational efficiency and patient care, ultimately strengthening Zimbabwe's healthcare system in the face of a VUCA environment.



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