Gov’t Proposes $578B Budget for Vaccine Factory in Wakiso – The Black Examiner
Summary:
Uganda’s government proposes a hefty supplementary budget of Shs 578 billion to support Dei Pharmaceuticals in building a vaccines factory. Despite skepticism and financial hurdles, President Museveni backs the initiative, emphasizing reducing reliance on imported pharmaceuticals.
Uganda’s Parliament is grappling with a significant financial proposal from the government: a supplementary budget of Shs 578 billion earmarked to bolster Dei Pharmaceuticals in establishing a vaccines factory in Matugga, Wakiso district.
Documents presented on April 19 by Minister of State for Planning, Hon. Amos Lugoloobi, outline the allocation: “Shs 578.4 billion will be allocated to the Ministry of Science, Technology and Innovation to support strategic pharmaceutical industrial investment under DEl Bio pharma. This funding aims to facilitate the completion of the business-production cycle, ensuring the company meets its debt obligations and operational necessities.”
This substantial investment has stirred public debate, with concerns raised about the feasibility of the ambitious venture. Nonetheless, President Museveni has thrown his weight behind the initiative, driven by the desire to reduce Uganda’s reliance on imported pharmaceuticals.
The genesis of this proposal dates back to 2023 when President Museveni directed Finance Minister Matia Kasaija to assist Mathias Magoola, the head of Dei Pharmaceuticals, in settling a loan of approximately Shs 500 billion obtained from Equity Bank Kenya.
Magoola’s endeavors gained attention in March 2023 when he presented his plans to the Cabinet. He disclosed borrowing $100 million (nearly Shs 400 billion) from Equity Bank Kenya to fund the construction of the Dei BioPharma factory in Matugga. Since then, both President Museveni and Kenyan counterpart William Ruto have visited the factory site in Wakiso district.
However, Magoola encountered financial hurdles, prompting a plea for government intervention. He articulated his need for a $400 million bailout, followed by an additional $600 million for project operations. Magoola projects the factory to produce drugs targeting cancer, malaria, while also creating over 2,000 jobs for Ugandans, with an anticipated revenue of $5 billion within five years.
Nonetheless, skepticism arose during Magoola’s presentation to the Cabinet, particularly regarding his claim of developing a cure for arthritis. Questions were raised about the absence of regulatory approvals and the allocation of previously borrowed funds.
An overview of the construction site of Magoola’s factory in Matugga
Despite reservations expressed by several Cabinet members, Deputy Prime Minister Rebecca Kadaga staunchly defended Magoola, highlighting his contributions and warning against dismissing him based on regional biases.
President Museveni, ultimately, intervened, emphasizing the need to support Magoola’s endeavors, questioning the rationale behind Equity Bank’s substantial loan and intervention in the businessman’s affairs.
As discussions continue, the fate of the government’s involvement in this controversial project hangs in the balance, with questions lingering about due diligence and the prudent use of public funds, reminiscent of past bailouts, notably the case of Roko Construction.
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NUP Gathering Disrupted: Kyagulanyi Alleges Security Force Harassment and Arrests
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Sudan Demands Apology from Uganda Over Army Chief Muhoozi Kainerugaba’s Threat to Invade Khartoum