Harare Zimbabwe (News of the South)-Local drug provider, Natpharm, is pushing the cash strapped government for the payment of a $25 million debt accrued through the Ministry of Health it owes the company as it aims to increase revenue generation from the current $9.4 million to $20 million by 2018.
The pharmaceutical company has been scrambling around for funds to recapitalize its cash-starved operations which have nationally, partly, created a negative impact with the suspension of some surgeries in hospitals due to the absence of certain medications.
“We want to increase availability of medicines, medicinal supplies and surgical sundries and also to increase public and private sector market share amongst our key objectives between now and 2018”.
“So we are continuously engaging the government for the debt payment of the current $25 million instead of looking at it for recapitalization”.
However skeptical at government’s ability to fulfil its obligations due to the current fiscal difficulties the NGO has already set up an in-house resource mobilisation unit that will lead the exercise to recapitalize it.
“We hope to come up with other innovative ideas on how to deal with the government’s failure to pay the debt”.
“Currently we have in place a resource mobilisation unit in case government fails to give us the money’, the company’s Managing Director Florah Sifeku said recently.
Natpharm has set itself ambitious targets that include increasing availability of basic medicines from the current 40% to 100%, specialist medicines, from 0% to 100% and medical and surgical sundries from the current 6% to 100% by 2018.
Chitungwiza Hospital CEO Dr Obadiah Moyo has since urged the company to create partnerships with the private sector utilizing its waiver from the State Procurement Board (SPB).
The SPB weaned off Natpharm with a waiver of tender requirements due to the company’s transparent procurement methods.
Natpharm is mandated to procure, warehouse and distribute medicines and medicinal supplies to various local government health facilities but has been facing difficulties getting funding from treasury a situation which has posed challenges for it.
Meanwhile in positive news for the company the Chinese government has pledged to fund the building of a new bigger warehouse in Harare.
The company currently has only 6 warehouses strategically placed across the country in places such as Bulawayo, Gweru and Masvingo.
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