The 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, while assessing the company’s performance, found that the substantial public investment in the privately operated firm lacks proper documentation detailing 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,” committee chairperson Martin Mapenduzi said.
Mapenduzi was presenting the committee’s report on its assessment of selected Science, Technology and Innovation projects during plenary chaired by Deputy Speaker Thomas Tayebwa on Tuesday.
According to the report, government provided Shs70 billion to Dei BioPharma in the 2023/24 financial year, an additional Shs75 billion in December 2023 and Shs578.4 billion through a supplementary budget in the 2024/25 financial year.
The committee established that government holds a 9.4 per cent stake in the company, which is expected to increase if additional financing is provided. However, evidence confirming the government’s shareholding was not presented to the committee during the assessment.
Dei BioPharma operates a 150-acre pharmaceutical manufacturing complex in Matugga, Wakiso District, comprising laboratories and facilities for producing generic medicines, vaccines, injectables, oncology medicines, penicillin, medical devices and other pharmaceutical products.
However, the facility is operating below its intended capacity because of gaps in infrastructure development and funding.
During the 2024/25 financial year, the company produced and distributed six generic medicines, including paracetamol, tramadol, metformin, doxycycline and metronidazole. Several specialised production lines, however, 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,” Mapenduzi said.
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.
The committee tasked the Ministry of Finance, Planning and Economic Development to provide the additional US$434 million required to complete and fully operationalise the facility.
The investment has reportedly created more than 1,000 jobs and is projected to generate up to 20,000 employment opportunities when fully operational.
The committee also recommended that government prioritise the provision of 100 megawatts of reliable electricity to the facility.
It further tasked the National Water and Sewerage Corporation to establish adequate water-treatment and storage infrastructure, noting that the facility will require between seven million and 10 million litres of water daily when operating at full capacity.
Other projects assessed by the committee include the Engineering Development and Innovation Centre in Kiruhura District, Nyakihanga Fruit Factory in Ntungamo District, Banana Industrial Research and Development Centre in Bushenyi District and Africa Coffee Park in Ntungamo District.
Parliament is scheduled to debate the report on Wednesday.
