Ethiopia Expands Local Production of Medicines, Vaccines and Medical Equipment: MoH

Addis Ababa, May 25, 2026 — The Ministry of Health (MoH) affirmed that Ethiopia has significantly increased its local production of medicines, vaccines and medical equipment.

According to the ministry, domestic suppliers is now covering more than 44 percent of national procurement.

In an exclusive interview ENA, State Minister of Health Dr. Dereje Duguma said the country has made notable progress in strengthening its health system, particularly through expanding local manufacturing capacity for essential health supplies.

“Ethiopia has been doing a lot in terms of improving the health system in general, but particularly the provisions that we, the health service provide for our communities,” he said, adding that domestic production has become a major policy and investment priority.

According to the state minister, progress accelerated over the past five years due to strong government commitment and targeted support for the health sector.

“Over the last many years there have been always trial to improve our local manufacturing capacity, but recently especially over the last five years because of the commitment of the government the health sector has been supported widely,” he stated.

He also revealed that a newly released report shows local suppliers now account for more than 44 percent of drugs and medical equipment procured in the country, up sharply from about 8 percent five or six years ago.

He attributed the improvement to sustained political commitment and incentives provided to manufacturers.

“There has been a huge political commitment on this one, and there have been very good incentives for manufacturers,” he said, noting that Ethiopia currently hosts more than 20 major local manufacturers capable of competing with international pharmaceutical companies.

The state minister highlighted the role of Kilinto Industrial Park, which was established to support domestic pharmaceutical and medical manufacturers.

He explained that government procurement practices have increasingly prioritized locally produced medical supplies, while health institutions have gained greater financial capacity to purchase them.

“It’s not only manufacturing, but the government and health facilities are always ready to procure the available locally produced medical supplies, and our facilities now have more finances to procure those items,” he said.

To encourage further investment, Ethiopia has introduced tax holidays and price preferences of up to 50 percent for eligible domestic manufacturers, alongside policy measures supporting exports to neighboring countries and broader African markets.

Looking ahead, the state minister invited local and international investors to participate in the sector’s expansion.

“So, the government has full support for local manufacturers, and I would like to also use this opportunity to invite any investor could be in the country or in the continent or abroad to invest in Ethiopia,” he stated.

The government aims to increase the share of locally produced medicines and medical supplies to more than 50 percent by 2030 as part of Ethiopia’s broader strategy to strengthen self-reliance and regional health security.