“This marks a significant step towards strengthening domestic investment in health product manufacturing,” Mhagama said, noting that the ministry has supported the establishment of ten new factories for medicines and medical devices.

The government has allocated $79 million from March to June 2025 to manage the funding transition, with $36.3 million already spent on procuring ARVs, tuberculosis, and malaria drugs, the citizen reports.

Tanzania has long depended on external support, notably the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR). However, recent funding cuts have disrupted HIV services across the region, prompting the shift.

Medical Association of Tanzania (MAT) President Dr. Mugisha Nkoronko welcomed the plan, saying, “MAT commends the government for taking this bold step to close the gap left by reduced US funding. We look forward to more local factories meeting national demand and exporting to African markets.”

Finance Minister Mwigulu Nchemba said the government is boosting domestic revenue and promoting public-private partnerships to sustain healthcare financing.