Will Stanbic’s UGX 133 Billion Bet Redefine Drug Manufacturing in Uganda?
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Stanbic Bank Uganda has approved a UGX 133 billion loan facility for Quality Chemical Industries Limited (QCIL), aimed at enhancing pharmaceutical manufacturing capacity in Uganda.
The funding will support the construction of a new production plant in Luzira, Kampala, increasing output of essential medicines, including treatments for HIV/AIDS, malaria, and tuberculosis.
The financing package was fully arranged by Stanbic Bank’s Corporate and Investment Banking (CIB) division and is structured as a term loan. Once completed, the new facility is expected to boost QCIL’s production from 1.4 billion to 2.4 billion tablets annually.
It will also introduce new production lines for injectables and TB treatments, critical additions amid growing regional demand for life-saving medication.
Read: I&M Bank Uganda Launches Short-Term Loan Facility for Salaried Customers
Emmanuel Katongole, Chairman and Co-Founder of QCIL, said the expansion aligns with the company’s goal of supporting healthcare needs across Africa.
“We are strengthening our capacity to serve not only Uganda but also the wider African market with high-quality, affordable medicines.” he said.
Ajay Kumar Pal, QCIL’s Chief Executive Officer, described the Luzira plant as a milestone in the company’s mission to manufacture in Africa, for Africa.
“The new factory represents a significant advancement in our commitment to expand access to high-quality, affordable medicines across the continent. It reinforces our purpose of manufacturing in Africa, for Africa,” he said.
Read: Paul Bitature Muganwa Joins Stanbic Bank Uganda Board as Executive Director
The financing comes at a time when East Africa faces a shortfall in the supply of essential medicines. Regional pharmaceutical manufacturers currently meet only 10% of the antiretroviral drug needs for the estimated 5 million people living with HIV in the East African Community (EAC).
For malaria, local production covers just 19% of the demand, despite over 54 million cases annually. The region also struggles to supply adequate TB medication, with over 600,000 new TB cases reported each year.
Paul Muganwa, Executive Director and Head of CIB at Stanbic Bank Uganda, noted that QCIL plays a vital role in the local healthcare supply chain.
“We are pleased to have delivered a bespoke sustainable finance solution that supports QCIL’s long-term vision in driving positive healthcare impact and contributing to the region’s capacity to produce essential medicine at scale” he said.
Stanbic Bank Uganda CEO Mumba Kalifungwa called the loan deal “a milestone deal, ambitious in scale, catalytic in purpose.”
Founded in 2005, QCIL is based in Kampala and is one of the region’s largest pharmaceutical manufacturers.
The company is prequalified by the World Health Organization (WHO) and has regulatory clearance to supply medicines in 31 African countries, with active exports to 14 markets.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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