1. CHALLENGES IN THE MANUFACTURING SECTOR Our Perspective

2. Country Risk Credit lines are not readily available - Raw materials purchased Cash Upfront (8-12 weeks before receiving) Collaborations – possible partners not interested because of small market with low disposable income Dossier purchases – normally tied in with API supply agreements. Market size is again not attractive!

3. Non Tariff Barriers For pharmaceutical exports to or passing via RSA, OR Tambo airport is the designated port of entry This puts a requirement on exporters (like us) to use expensive air transport – results in higher prices Zimbabwe does not have corresponding demands for pharmaceutical products from RSA and can therefore use more economic transport modes to compete with us in Zimbabwe

4. Path to Market hurdles…. Taking long to register products in the region (up to ten years) Product registration processes are not harmonised in the region hence need to register in every intended destination market. Need to make it easy to trade within the region

5. Product Development costs.. As much as we may want to come up with new products, the development process requires substantial investment Given the depressed market, especially the non-existent government market, it makes it quite a hurdle to raise sufficient funds to inject into R&D

6. Import Duties & VAT Duty on raw materials varies from 5-30% VAT is charged at 15% of CIF value BUT under SI 220 of 2000, finished pharmaceutical products are exempt from paying duty Therefore local manufacturing ends up being more expensive

7. Donations…. Most donations come as finished products, this leads to a reduced capacity utilisation for manufacturers. For example, if the Gvt receives donations of say Paracetamol syrup, that will fill in the market that local manufacturers were meant to benefit from.