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Funding Constraints Hamper NatPharm’s Role in Public Health Procurement

By Kuda Pembere

Severe funding constraints are undermining Zimbabwe’s public health procurement system, disrupting the National Pharmaceutical Company’s (NatPharm) ability to maintain a reliable medical supply chain.

NatPharm, a government parastatal, is responsible for procuring and distributing medical products nationwide. Its operations were further strained by the abrupt withdrawal of U.S. government funding through USAID during the Donald Trump administration.

Speaking to journalists on the sidelines of a Health Products Supply Chain Management Dialogue, Health and Child Care Ministry Secretary Dr. Aspect Maunganidze pointed to low budget allocations as one of NatPharm’s biggest constraints.

“The challenges we have start with budgeting. Ideally, you want 100% of the budget needs covered. Unfortunately, in a resource-constrained environment, allocations often fall short. We have to make do with what we get. As Zimbabweans and Africans, we are always innovative. We want to survive. But one of the major challenges is not receiving enough for our needs,” he said.

He added that late disbursements further erode suppliers’ confidence.

“It’s not enough to allocate; funds must also be released on time. That disconnect is a major challenge because people’s needs don’t stop. Hospitals need supplies. But if disbursements are delayed, NatPharm and institutions fall into debt with suppliers. Once that happens, suppliers lose confidence, and drug availability suffers,” Dr. Maunganidze said.

Ruwa legislator Thomas Muwodzeri also weighed in, noting that NatPharm defended its shortcomings by citing funding issues.

“NatPharm was the most hard hit. They said sometimes they fail to provide medicine because of lack of funding, transport challenges, and staff unwillingness to work due to poor remuneration. So we should look at how to remunerate staff at NatPharm, hospitals, provincial institutions, and ward level. If workers are motivated, NatPharm will function better. But as the Finance Minister says, ‘we eat what we kill,’” he said.

He added that parliamentarians would advocate for timely and adequate disbursements.

“A budget is not disbursement. A budget is just a figure, for example, saying the Ministry of Health will get 16 billion (ZiG). The question is, how much of that is actually released? As parliamentarians it is our duty to ensure the money budgeted is disbursed,” said Muwodzeri.

NatPharm General Manager Newman Madzikwa said that, at a time when Zimbabwe still relies heavily on imported medical products, the company has engaged local manufacturers to produce 49 items.

“We have just signed contracts and MOUs with local manufacturers to supply those products. We are also targeting friendly countries willing to share technology, so we can procure from them with the aim of transferring technology in the long run. While we build our own infrastructure, we use their support to strengthen local production,” he said.

Madzikwa added that alternative financing mechanisms were being explored.

“We are trying to reduce the burden on central government, which finances health facilities that then pay us for products. Instead of demanding upfront funding from Treasury, we are looking for smart partnerships and affordable financing options, while expecting Treasury to support institutions to pay for deliveries,” he said.

Crown Agents Managing Director Muchaneta Mwonzora presented findings of a UK-funded assessment on how the Trump Stop Order affected Zimbabwe’s health procurement systems. She said the study found that the supply chain was heavily dependent on USAID and other donors.

“We found that Zimbabwe’s supply chain was very donor dependent, with governance issues at the core. Yet Zimbabwe has strong systems and institutions such as NatPharm, the National AIDS Council, the Procurement Regulatory Authority of Zimbabwe, and various policies and acts. The problem is we are not fully following or enforcing these frameworks,” she said.

The study recommended recapacitating both NatPharm and the Ministry of Health.

“For example, the NatPharm board needs to be strengthened so it can raise issues with the Ministry. Recapitalising NatPharm would help reduce overreliance on donor support. Currently, over 80% of NatPharm’s stocks are donor-funded. With stronger local funding and support, we can secure pharmaceutical supplies within Zimbabwe,” Mwonzora said.

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