Tanzania to revive TPI Arusha to boost local ARV production amid foreign aid cuts
Tanzania has been a huge benefactor of foreign ARV aid in the past, particularly from the US President's Emergency Plan for Aids Relief (PEPFAR).
Tanzania has announced plans to resume operations at the Tanzania Pharmaceutical Industries (TPI) in Arusha, in a bid to boost the production of antiretroviral (ARV) drugs in the country.
Health Minister Jenista Mhagama made the announcement on Monday while presenting the ministry’s TSh1.61 trillion (Sh77.4 billion) budget estimates for the 2025/26 financial year before Parliament in Dodoma, citing shifting global health funding priorities as the key driver behind the decision.
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Tanzania has been a huge benefactor of foreign ARV aid in the past, particularly from the US President's Emergency Plan for Aids Relief (PEPFAR).
With President Donald Trump issuing executive orders halting the funding of PEPFAR, Tanzania is now exploring new options to reduce over-reliance on foreign aid.
In response to the foreign aid cuts, the Tanzanian government has set aside TSh202 billion (Sh9.7 billion) for the period between March and June 2025 to help cushion current deficits. Out of this allocation, TSh93.16 billion (Sh4.5 billion) has so far been spent on acquiring essential medications for HIV, tuberculosis and malaria.
"This marks a significant step towards strengthening domestic investment in health product manufacturing," said Mhagama, according to The Citizen.
Ten new factories
She added that Tanzania has commissioned the establishment of 10 new factories in the pharmaceutical industry.
"These factories will ensure the continued supply of therapeutic water, laboratory reagents, tablets and liquid medications, especially ARVs," said Mhagama.
The TPI factory in Arusha has also been allocated TSh173.94 billion (Sh8.4 billion) for the production of malaria, tuberculosis, leprosy, HIV/Aids, hepatitis and STIs medicines.
The Tanzanian government has also allocated an additional Sh309.51 billion (Sh14.9 billion) for the enhancement of healthcare services across all public hospitals, with particular focus on streamlining digital operations.
Similarly, TSh166.01 billion (Sh7.9 billion) has been set aside for combating communicable and non-communicable diseases. A further TSh123.93 billion (Sh5.9 billion) has been earmarked for advanced medical procedures, including liver transplants.
An additional TSh80.38 billion (Sh3.9 billion) will be used to recruit skilled healthcare workers across the country, while another TSh76.57 billion (Sh3.7 billion) has been set aside to combat maternal and infant mortality.
The Tanzanian government has similarly set aside TSh9.80 billion (Sh470.9 million) for the implementation of the Universal Health Insurance Act and a further TSh6.61 billion (Sh317.7 million) to boost mental health and rehabilitation services.
Similarly, TSh937.29 million (Sh45 million) has been set aside to boost the integration of traditional medicine from 14 to 21 regional referral hospitals.
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