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USD 23m Veterinary Pharmaceutical Factory Commissioned in Uganda.

posted 24 Nov 2016, 04:31 by David Tamale   [ updated 24 Nov 2016, 05:52 ]

H.E Alphonse J.A. M Hennekens, Kingdom of Netherlands Ambassador to Uganda unveils the Alfasan Commissioning Plaque on April 21st, 2016 at Namanve Industrial Park

The first ever animal drugs factory in the country estimated at $23 Mn/-was commissioned at the Kampala Industrial and Business Park in Namanve at a high profile event on April 21st, 2016. It was officially by Hon. Tress Bucyanayandi, then Minister of Agriculture, Animal Industry & Fisheries.

The factory, to cost 23 million United States Dollars (original estimated cost was 13.6 Million US Dollars, the increase being occasioned by terrain conditions at Namanve and increases in prices) will be built in 3 phases. Phase 1 was commissioned on Plot 420, Kampala Industrial and Business Park in Namanve.

Speaking at the ceremony, UDB Chairman Dr. Samuel Sejjaaka said, "The veterinary pharmaceutical factory is a fitting description of UDB's vision as it reflects the Bank's mission of profitably financing enterprises in key growth sectors. We are proud to associate with this project that UDB has supported from inception through thick and thin.

"We are proud to be one of the main sponsors of this import substitution project which is expected to guarantee provision of affordable livestock drugs made to the highest international standards to improve animal health by reducing mortality and morbidity rates of livestock whilst creating employment in the sector for the local people in line with our vision and mission," said Dr. Sejjaaka.

Speaking earlier at the function, Dr. Birungi, one of the proprietors of Alfasan said. 'We expect the cost of the veterinary medicines to become cheaper by between 30 and 40% for same European quality. The reason is that the biggest cost component of imported drugs is labour cost. Whereas we shall pay our staff salaries 50% higher than market average, the labour cost will still be much cheaper than it is in Europe and Asia. Also cost of inputs such as packaging will be cheaper than in Europe. The aggregate reward will thus be getting European quality for lower price."

Phase 1 of the project which was commissioned was financed by UDBL in 2012 through a loan of € 1,262,129.00 (Ugx 4,045,124,983) utilized as €692,129 for construction and €570,000 for importation of machinery. Alfasan Uganda becomes the first veterinary pharmaceutical factory in Uganda.

Alfasan Uganda Ltd is a private limited liability Company incorporated in Uganda (2009) to manufacture veterinary pharmaceuticals and other animal health products. The factory project is being put together as a joint venture by the following companies: (Our current suppliers) Alfasan Nederland B.V based in the Netherlands, Cygnus B.V (The Netherlands), Qualivet B.V (Belgium) together with Farm Support Ltd (Uganda). This factory is designed to serve the market comprising Uganda, Burundi, Tanzania, Democratic Republic of Congo, Rwanda and South Sudan an area already served through import and distribution by Farm Support Ltd.