NATPHARM on Brink As Urgent Financial Rescue Is Needed for Medicine Supply

Harare, Zimbabwe – Zimbabwe’s National Pharmaceutical Company (NATPHARM), the critical backbone of the nation’s medicine supply chain, is in dire need of a substantial financial injection to avert a collapse that could severely impact public health.

This stark revelation emerged from Aspect Maunganidze, the Secretary for Health and Child Care, during a recent appearance before the Health and Child Care Portfolio Committee.

Maunganidze painted a grim picture for legislators, stating unequivocally that NATPHARM is currently in a precarious financial position and requires immediate 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 emphasized, highlighting the urgency of the situation.

In response to this looming crisis, the Ministry of Health and Child Care has already initiated efforts to secure emergency funding. Maunganidze confirmed that the ministry is actively mobilizing US$10 million through the Treasury for an immediate release. This sum is deemed crucial to “allow for immediate medicines to replenish stock,” a vital step to prevent further deterioration of medicine availability.

The financial woes extend to NATPHARM’s obligations to its suppliers. The company is currently burdened with approximately US$7.5 million in outstanding payments to two key contractors, IntraFAMO and Clean Planet.

As a wholly state-owned entity, NATPHARM’s mandate encompasses the procurement, warehousing, and distribution of all medicines and medical supplies to public health institutions nationwide. Its operational stability is thus intrinsically linked to the overall functionality and effectiveness of Zimbabwe’s healthcare system.

Further insights into NATPHARM’s struggles were provided by Maunganidze, who disclosed that the company significantly underperformed financially in 2025. Total revenue reached only US$25.5 million, falling substantially short of the projected US$36.2 million. While handling income slightly surpassed its budget at US$9.7 million (against US$9.1 million), sales revenue stood at US$15.8 million.

However, these figures are overshadowed by considerable liabilities and operational inefficiencies. Maunganidze pointed out a total debt of US$1.1 million and a staggering US$3 million worth of expired stock written off in 2025. Internal assessments indicate that a significant portion—nearly 80%—of this expired stock could have been salvaged with improved systems and more effective planning.

The Health Ministry also raised concerns about the persistent shortage of essential medicines in public health facilities. “The ministry expects that 50% of its institutions should at least be well stocked on tracer medicines. Currently, our performance is at about 47%,” Maunganidze reported, indicating a shortfall in critical drug availability.

Tracer medicines, along with the Vital, Essential, and Non-essential (VEN) classification system, are standard metrics used to evaluate the availability of crucial drugs and the efficiency of supply chain performance. NATPHARM’s current performance on the VEN system is 65%, which is 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,” Maunganidze concluded, emphasizing the systemic challenges that continue to plague the nation’s pharmaceutical supply and distribution network.