Uganda Development Bank has announced that it supported Microhaem Scientifics (MHS), the first local IVD manufacturer in Uganda and Sub Saharan Africa.
MHS on Monday flagged off the first locally manufactured testing kits for Malaria destined to the National Medical Stores.
In a statement on Wednesday, UDB said it had supported MHS in acquiring capital-intensive equipment and purchase of raw materials.
MHS produces diagnostic kits that enhance the efficiency, convenience, and accuracy of malaria, HIV, and sickle cell disease diagnoses.
Patricia Ojangole, the Managing Director of Uganda Development Bank, described the event as significant milestone.
“This is a testament to the remarkable potential of Uganda’s innovation and industrial capabilities. At UDB, our mission has always been to empower local enterprises, foster sustainable growth, and drive socio-economic transformation through strategic investments. Today, we see the tangible results of that mission come to life,” Ojangole said.
“ With an investment of $7.5 million allocated for asset financing and the purchase of raw materials, we have not only supported Microhaem Scientific’s journey but also reinforced our belief in the power of homegrown solutions to address critical healthcare challenges.”
OShe said the project aligns with UDB’s mandate and strategic plan to support manufacturing enterprises.
It aims to increase the range and scale of products for import substitution, export promotion, and improved trade terms to grow the industrial sector and enhance its contribution to the nation.
Dr. Cedric Akwesigye, the Managing Director of Microhaem Scientific, emphasized that the company is working to reduce reliance on imports by locally manufacturing products that have traditionally been sourced from abroad.
“The advantage of this is that we will not have to wait long for imported products. For instance, the kits we are dispatching today were manufactured on February 2nd, and by February 4, they will be in a health facility. Previously, an order would mean waiting three months due to shipping,” Akwesigye explained.
He also highlighted the challenges faced by Ugandan manufacturers, particularly the lack of long-term financing.
“UDB has provided crucial support to MHS. The primary assistance was financing, which greatly contributed to establishing our manufacturing plant and purchasing equipment. Additionally, the “Financing has always been challenging, especially in Africa where capital is expensive. UDBis a development finance institution that offers affordable credit and is patient with businesses committed to development projects.”
Uganda currently utilizes approximately 30 million malaria tests and 15 million HIV tests annually. Until now, all these Rapid Diagnostic Tests (RDTs) have been imported, and MHS aims to tap into this market.
Local supply brings additional benefits, including eliminating shipping costs and improving the efficiency, convenience, and accuracy of malaria, HIV, and sickle cell diagnostics.
“We are better prepared for any emergencies that may arise. Uganda can produce testing kits for its population and the East African region if a pandemic occurs. We are building a center capable of manufacturing for the entire continent,” Akwesigye stated.
MHS is ISO-13485-certified for in vitro diagnostics (IVD) for malaria, HIV, and sickle cell testing. Currently, the company employs 423 permanent and 27 temporary staff, producing 80 million tests annually with the potential to scale up.
The firm’s product pipeline also includes monoclonal antibodies and vaccines, among other offerings.