Mumba Kalifungwa, Stanbic’s Chief Executive
One of Africa’s biggest drug manufacturer’s, Quality Chemical Industries Limited (Qcil) has secured a $36m (sh133b) debt facility from Stanbic Bank Uganda, to construct a second manufacturing facility.
Qcil currently produces TLD (a combination of tenofovir, lamivudine and dolutegravir), the latest first-line treatment used to treat and prevent HIV/AIDS, and by early last year, it was exporting medicine to 13 African countries, with regulatory approval in 31 African countries.
Emmanuel Katongole, Chairman and Co-Founder of Qcil, the new loan facility will not only enable them to increase production capacity for their existing portfolio, but also expand into new therapeutic areas, including the production of injectable medications.
“This investment will enable us to scale our annual manufacturing capacity from 1.4 billion to 2.4 billion tablets, while introducing specialised production lines for TB treatments, injectables and other innovative products,” he said.
The financing, arranged by Stanbic Bank’s Corporate and Investment Banking (CIB) division—comprises a $36m term loan for the construction of a second WHO compliant pharmaceutical manufacturing plant on Qcil’s existing Luzira site.
Katongole further noted that they are strengthening their capacity to serve not only Uganda but also the wider African market with high-quality, affordable medicines.
“With Stanbic’s support, we are positioning ourselves to meet increasing regional demand and reduce dependency on imported medicine. This investment will strengthen our leadership in African pharmaceutical manufacturing, supporting greater access to affordable medication and building a more self-reliant healthcare ecosystem for the region,” he said.
Ajay Kumar Pal, Qcil’s Chief Executive Officer, highlighted the facility’s strategic significance to the company’s continued growth, saying the new factory represents a significant investment in their mission to expand access to critical medicines by manufacturing in Africa, for Africa.
“It will enable us to introduce specialised production for TB treatment, making Qcil the only TB medicine manufacturer in the region, he said, adding that despite the region’s burden of disease, local pharmaceutical production remains limited.
He said that currently, East African manufacturers meet just 10% of the demand for antiretroviral drugs for the region’s 5 million people living with HIV, and only 19% of the demand for malaria treatments—despite 54 million cases reported annually.
“The region records over 600,000 TB cases each year yet has no local production capacity for TB medicines.”
Paul Muganwa, Stanbic’s executive director and Head of CIB said Qcil is a vital link in Uganda’s healthcare value chain. “We are pleased to have delivered a 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.
Mumba Kalifungwa, Stanbic’s chief executive described the transaction as both bold and necessary, adding that it is a milestone deal, which is catalytic in purpose.
“We are honored that Qcil entrusted us with such a strategic mandate. Transactions like these demonstrate what it truly means to drive Uganda’s growth. This is financing what matters, for the people who matter.”
Qcil, founded in 2005 and headquartered in Luzira, Kampala. Because of the firm’s increasing production capacity Uganda, has become the largest producer of World Health Organization (WHO) pre-qualified HIV/AIDS and malaria treatments in the region and has an extensive footprint.
It additionally produces antimalarials including Lumartem, containing artemisinin and lumefantrine, Texavir and Zentair, as well as antibacterials, anti-hypertensives, vasodilators, anti-emetics, antibiotics and antidiabetics which are Hepatitis B generic medicines.
