NAPM: preferential list sidelines cheap medicines importers

The NAPM is one of several local trade bodies for pharmaceutical companies. The complaint has been denied by trade and industry's deputy director-general for industrial policy, Nimrod Zalk, who said the claim of inadequate consultation was "absolutely not true".

According to the government's industrial policy, local manufacturers - such as the pharmaceutical sector - should be given preference, in order to stimulate the local industry and attract foreign investment. A list of pharmaceutical products designated for preferential procurement has been finalised by trade and industry in consultation with the Department of Health, and is expected to be published by the Treasury shortly. The NAPM fears the list will prejudice those of its members that import medicines. Importers stand to lose a significant part of their government business unless they invest in local manufacturing capacity.

NAPM CEO Charles Mothata told Business Day that the association supports incentives "but (not to) the detriment of importers." If importers of cheap generic medicines are prevented from bidding for government business, he said, it would reduce competition and could push up prices. Locally made medicines would not necessarily be cheaper than those imported from countries such as India. "We are not saying there should not be incentives for local manufacturers," Mothata said, "but the way the list has been structured compromises cheap and affordable medicines."

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