Plan to manufacture ARV drugs hits a snag

It has been five years since president Ian Khama made an announcement that a company that manufactures Anti-Retroviral (ARV) drugs was going to open in Selebi-Phikwe.

Khama, who had come to address a political rally in Selebi-Phikwe in 2009 a few months before the general election, used the opportunity to also announce the establishment of the company explaining that it was going to employ more than 1,000 workers. Not much was revealed about the company.

However, the news later on died, leaving residents in utter curiosity. Botswana Guardian has established the company in question as Gemi-Pharmacure, owned by two citizen brothers, Mike Proctor and George Proctor. Gemi Pharmacure had written a proposal to government ministries in 2010 seeking letters of support that would also spell out specific incentives that each ministry would be willing to grant the project.

According to the project proposal, the company was to develop a state-of-the-art multiple complex facilities for the full manufacturing, from active pharmaceutical ingredients of generic pharmaceuticals including ARVs, anti-tuberculosis, anti-malarials, analgesics, anti-hypertensives, anti-diabetes, among other drugs, especially those in the treatment of HIV/AIDS and related opportunistic infections. It was a joint project between the company, Selebi Phikwe Regional Economic Development Unit, Health Hub and BEDIA (now merged with IFSC to form BITC).

Senior Private Secretary to the President Brigadier George Tlhalerwa explained to Botswana Guardian that government was facilitating the Proctor brothers with licence and land. Then minister of Lands and Housing Nonofo Molefhi told BG News that he allocated a 20 hectares land for the project through SPEDU. However, Tlhalerwa said the deal never succeeded as investors to be brought in by the company owners pulled out. In an interview, Proctor said the project took too long since government was not showing much needed enthusiasm in buying from their company.

He stated that they had found financiers from Europe and United States who had promised to invest 1 million USD. They had not yet signed a contract with their potential investors. “It required a lot of intervention from government’s side but she was not coming on board,” he said, explaining that government could not guarantee that she would buy from them. “The US investors wanted tangible involvement by government as the project relied primarily on government as the main buyer,” he added. Proctor explained that government could not help them but rather referred them to Botswana Confederation of Commerce Industry and Manpower to draw a roadmap outlining the involvement of government and the ministry in the project. 

Going forward

Proctor said they are currently looking for new incentives after the development of the roadmap by BOCCIM.  He said this year they joined hands with the Healthcare committee at BOCCIM to find ways on how government can engage the private sector in the health sector. “Although government is willing to help resuscitate the project, there is no infrastructure behind policies that have been set up,” he said. He said the project is ongoing but that they are going to reduce its scale. Initially, they had wanted to employ 15 000 people. Several changes will be made and that may include moving the plant from Selebi-Phikwe. “I’m not sure how much information president Khama got but what I know is that it reached him and initially he was very supportive,” said Proctor. BITC Business Facilitation director Reginald Selelo said they were working with the Drugs Regulatory Unit of the Ministry of Health to ensure that it gives pharmaceutical companies trading licences.

He explained that the assessment is sensitive as quality and the effectiveness of drugs are major factors considered. “Given the importance of the pharmaceutical sector, the BITC facilitated allocation of 1.1 hectares of land to the company in Lobatse in 2011 for their condom manufacturing plant,” he said. In addition, the BITC has provided a 2000 metre square facility on a subsided rental basis in Gaborone.