By Michael Gwarisa
When you walk into a pharmacy or a hospital in Zimbabwe, chances are high that the medicine you’re prescribed or dispensed is manufactured by Varichem. From its humble beginnings as a manufacturer of automobile lubricants and brake fluids, Varichem Pharmaceuticals has grown to become a leading pharmaceutical manufacturer with a footprint that spans multiple African countries.
This year, Varichem marks a remarkable 40 years in the pharmaceutical manufacturing business. It is a journey shaped by visionary leadership, resilience in the face of economic and regulatory adversity, and unwavering support from the local and regional healthcare community.
According to Mr. Dennis Choguya, Marketing Manager at Varichem, the company’s story is one of evolution and bold decisions.
Varichem was incorporated on July 1, 1985. But the journey didn’t begin with pharmaceuticals. It started with three determined individuals who pooled personal resources to manufacture brake fluids,” he said.
Humble Beginnings in Lubricants
Operating initially from a single unit in an industrial complex in Msasa, the founding trio focused on automotive lubricants and brake fluids. Their first product — brake fluid — sold well enough to generate seed capital for their true passion: pharmaceuticals.
“They were only renting one day a week in that complex,” recalls Choguya. “Eventually, they bought the entire complex. The income from brake fluid production was invested into building a pharmaceutical division.”
This reinvestment laid the foundation for what would become one of Zimbabwe’s most resilient and visionary pharmaceutical companies.
Expanding the Business: Early Milestones
As early as 1985, the company established its first pharmaceutical laboratories. Realising the need to diversify income streams and sustain the growth of its pharmaceutical line, Varichem set up a personal care product subsidiary called Procare. This subsidiary launched now well-known consumer brands such as Matt Smooth, Elegance, Seduce, and Jazz.
By 1989, Varichem opened a chain of pharmacies under a different name before later rebranding it to Greenwood Pharmacy. In 1992, the company built its current production plant along Glen Eagles Road, from the ground up, specifically tailored for pharmaceutical manufacturing.
To mitigate packaging challenges, Varichem backward integrated by investing in a packaging company — GDZ Plastics — which now produces all the plastic packaging used in its operations.
Responding to National and Regional Health Needs
In 2004, Varichem was granted a compulsory license by the Zimbabwean government to manufacture antiretrovirals (ARVs) as part of the national HIV response. This was a turning point. Their triple combination ARV product known as Red Stud became one of the backbones of national HIV programs.
The company pursued WHO Prequalification for two of its ARVs, LZ and Stavanil, enabling them to enter regional markets and export to several African countries. The WHO endorsement added to their credibility and capacity to compete in the region.
As their workforce grew, so did their responsibility. In 2014, Varichem established its own employee medical aid scheme — Varimed Medical Fund — showing their commitment to staff welfare and continuity.
Strategic Upgrades and Capacity Building
“Varichem was built to manufacture cost-effective generics locally,” said Choguya. “Initially, the plant had more capacity than we needed. That’s why we began eyeing regional markets.”
The first major plant upgrade was in 1996, enabling the company to meet the requirements of South Africa’s Medicines Control Council (now SAHPRA), through a license issued by NALSAPRA. A second upgrade came in 2007–2008, aimed at matching WHO manufacturing standards, leading to WHO Prequalification in 2010.
In 2014, Varichem borrowed nearly $10 million — not from local banks, who were unwilling to finance the expansion, but from a regional financial institution — to increase efficiency and capacity for exports. This strategic investment laid the groundwork for Varichem’s penetration into several regional markets.
Fast forward to 2025, the company is undertaking yet another upgrade, temporarily closing the factory for 90 days to ensure its facilities remain compliant and competitive in the modern pharmaceutical manufacturing landscape.
“The upgrade wasn’t imposed by regulators, but we felt it was prudent,” Choguya explained. “We always want to stay ahead of compliance expectations.”
Overcoming Challenges Through Innovation
Every decade brought a new challenge, and Varichem responded with innovation.
- 1985: The primary challenge was the high cost of medicines in Zimbabwe. Varichem was founded on the commitment to manufacture cost-effective generics.
- 1996: The company faced underutilised capacity due to limited local demand. This spurred the first plant upgrade and entry into South African markets.
- 2002: With government tenders drying up, Varichem pivoted further into exports to stabilise income and sustain operations.
- 2007–2010: As regulatory compliance demands increased in regional markets, Varichem proactively upgraded to align with WHO standards.
- 2014 onwards: Following strategic withdrawal from the ARV market due to commercial reasons, Varichem channelled its capacities into manufacturing other medicines, including metformin and other chronic condition treatments.
“Each setback only pushed us to become more efficient, more compliant, and more innovative,” said Choguya.
Growing Regional Presence
Today, Varichem’s medicines are registered in eight countries, including South Africa, Namibia, Botswana, Rwanda, Tanzania, Zambia, Malawi (though exited), and Mozambique. Notably, Rwanda recently approved the registration of the first 18 Varichem products, cementing the company’s commitment to regional healthcare.
Choguya noted that while markets like Zambia and Malawi have been difficult due to regulatory and economic challenges, other markets like Tanzania and Mozambique are showing promise. “We’ve made strategic exits where necessary, but we’re still bullish on Africa’s potential,” he said.
A Future Fueled by Resilience
As Varichem celebrates 40 years of pharmaceutical excellence, its management acknowledges the vital role that healthcare professionals, policy makers, regulators, and consumers have played in shaping the company’s journey.
Quoting Isaac Newton, Choguya remarked, “If I have seen further, it is by standing on the shoulders of giants.” He added, “Varichem’s growth has been made possible by you — the pharmaceutical community, policy makers, the MCAZ, and our partners. We say thank you.”
