Equity Bank Uganda has committed more than $50 million to Microhaem Scientifics to support the company’s expansion of medical manufacturing, including a new production facility at Namanve Industrial Park.
The scale of the investment was highlighted on August 7 when Equity Bank Uganda board chairman Henry Rugamba, managing director Gift Shoko and other senior executives visited Microhaem’s existing facility in Ntinda and inspected its 20-acre Phase II development at Namanve.
The visit gave the bank an opportunity to assess progress on a project that could play a role in Uganda’s efforts to increase local production of medical supplies, reduce reliance on imports and develop industries that can serve both the domestic and regional markets.
Microhaem was founded by Ugandan scientist Dr Cedric Akwesigye and has spent about 14 years developing and manufacturing in-vitro diagnostic products for African markets.
Its products include diagnostic tests for malaria, HIV and sickle-cell disease, as well as molecular reagents used in medical testing.
The company’s expansion is based on the idea that some medical products currently imported into Uganda and other African countries can be manufactured locally, helping to strengthen supply chains and retain more value within the region.
The Covid-19 pandemic exposed the risks faced by countries that depend heavily on imported medical products. Disruptions to international transport and supply chains made it difficult for many countries to obtain essential health supplies.
For Uganda, local manufacturing could also help reduce pressure on foreign exchange used to pay for some imported medical products, although the extent of any reduction will depend on the competitiveness and scale of local production.
Microhaem’s Ntinda facility currently supplies national programmes and private healthcare providers. The company is now developing a much larger manufacturing complex at Namanve to increase production and expand into additional areas.
The Phase II development includes a four-level manufacturing block measuring about 40 metres by 160 metres, utility systems, research and development facilities and a plastics plant expected to produce syringes and other consumables.
The company also plans to use the development as a base for possible expansion beyond diagnostics into pharmaceutical manufacturing.
Civil works on the main manufacturing block are expected to be completed by December 2026. The facility will then undergo Good Manufacturing Practice fit-out and validation before commercial production begins.
Microhaem expects to have its first validated products from the new facility in about 18 months, subject to completion of the required works, equipment installation and regulatory processes.
The project illustrates the type of long-term financing required for businesses seeking to move from relatively small-scale production into more sophisticated manufacturing.
Equity Bank said its financing to Microhaem has supported the expansion of production capacity, quality systems and infrastructure.
“This is African capability in action,” Rugamba said during the visit. “Microhaem is not waiting for solutions to be shipped from elsewhere; it is building them here.”
The financing is part of Equity Group’s Africa Recovery and Resilience Plan, which focuses on private-sector investment, industrialisation and the development of regional value chains.
Shoko said the investment reflects the bank’s strategy of directing capital towards businesses that can strengthen local production, create skilled jobs and reduce dependence on imported goods.
However, building a factory is only one part of developing a successful medical manufacturing industry.
Local manufacturers also need reliable access to finance, consistent demand, strong research and development capacity, skilled workers, recognised quality standards and access to regional and international markets.
Government procurement policies can also influence the growth of local manufacturers because large and predictable orders can give companies the confidence to invest in production capacity.
Microhaem’s Namanve project therefore provides a wider test of Uganda’s ability to develop an ecosystem that supports sophisticated medical manufacturing.
Akwesigye said the company’s goal is to produce high-quality medical products in Uganda for use in the country and across Africa.
“Fourteen years of rigorous development, testing and iteration have brought us to this point,” he said, crediting Equity’s financing with helping the company sustain its expansion.
If completed and brought into full production as planned, the Namanve facility could significantly increase Microhaem’s manufacturing capacity and allow the company to produce a wider range of products.
For Uganda, the potential benefit goes beyond one company.
Increased local production of diagnostic products and other medical supplies could support industrial development, create specialised jobs and provide an alternative source of some products that are currently imported.
But the success of the investment will ultimately be measured by what the new facility produces and sells.
