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MPs Want Safeguards for Government’s Shs723.4 Billion Investment in Dei BioPharma
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MPs Want Safeguards for Government’s Shs723.4 Billion Investment in Dei BioPharma

Watchdog Uganda about 2 hours 3 mins read

The Parliamentary Committee on Presidential Affairs has called for stronger accountability, reliable utilities and clear performance targets for Dei BioPharma Limited, following a government investment of Shs723.4 billion in the pharmaceutical manufacturing project.

The committee during its assessment of the company’s performance revealed that the substantial public investment in the privately operated company lacks proper documentation of the government’s shareholding, expected returns, project deliverables and measurable benefits to Ugandans.

“Government should ensure that clear documentation of government’s shares in Dei BioPharma, the expected returns, deliverables and performance targets, commensurate with the public resources invested are provided,” said Hon. Martin Mapenduzi while presenting the committee’s report on its assessment of selected Science, Technology and Innovation Projects.

Mapenduzi presented the report during the plenary sitting chaired by Deputy Speaker Thomas Tayebwa on Tuesday, 06 October 2026.

According to the report, government provided Shs70 billion to Dei BioPharma in the 2023/2024 financial year, an additional Shs75 billion in December 2023 and Shs578.4 billion through a supplementary budget in the 2024/2025 financial year.

The committee also found out that government holds a 9.4 per cent stake in the company, which is expected to increase if additional financing is provided. However, proof of the government’s shareholding was not presented during the assessment.

Dei BioPharma operates a 150-acre pharmaceutical manufacturing complex in Matugga, Wakiso District, comprising laboratories and facilities for the production of generic medicines, vaccines, injectables, oncology medicines, penicillin, medical devices and other pharmaceutical products.

The company however operates below its capacity due to gaps in infrastructural development and funding. In the 2024/2025 financial year, Dei Biopharma produced and distributed six generic medicines, including paracetamol, tramadol, metformin, doxycycline and metronidazole. However, a number of specialised production lines remain under installation, validation and commissioning.

“The current level and range of production remain below the envisaged capacity of the overall investment. Unless this financial gap is urgently addressed, government risks having a strategically important national investment operating below capacity,” said Mapenduzi.

He called for the speedy completion and commissioning of the remaining production lines to support import substitution, national medicine security, pharmaceutical exports and employment creation.

In this, the Ministry of Finance, Planning and Economic Development was tasked to provide the additional US$434 million required to complete and fully operationalise the facility which has reportedly created more than 1,000 jobs and is projected to generate up to 20,000 employment opportunities when fully operational.

The report also recommends government to prioritise the provision of 100 MW of reliable electricity to the facility and the National Water and Sewerage Corporation to establish adequate water-treatment and storage infrastructure, noting that the facility requires between seven million and 10 million litres of water daily to operate at full capacity.

Other projects assessed include; the Engineering Development and Innovation Centre in Kiruhura District, the Nyakihanga Fruit Factory in Ntungamo district, the Banana Industrial Research and Development Center in Bushenyi district, the Africa Coffee Park in Ntungamo district.

Debate on the report is scheduled for Wednesday, 07 October 2026.

The post MPs Want Safeguards for Government’s Shs723.4 Billion Investment in Dei BioPharma appeared first on Watchdog Uganda.

This article was sourced from an external publication.

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