Qcil Invests Shs130 Billion to Make TB Drugs in Uganda

July 21, 2025

Qcil TB drugs investment is a major breakthrough for Uganda’s pharmaceutical sector. Quality Chemical Industries Ltd (Qcil), based in Kampala, is investing Shs130 billion to manufacture tuberculosis (TB) drugs locally. TB remains a significant health burden in Uganda, with about 94,000 new cases and 4,700 deaths reported annually.

Until now, Africa has lacked local production of TB treatments. Fortunately, Qcil’s expansion will bridge that gap. According to CEO Mr. Ajay Kumar Pal, the factory will focus on producing both first-line and drug-resistant TB medicines.

In addition to TB drugs, Qcil will expand its existing HIV and malaria portfolio. The company plans to manufacture Lenacapavir, a new injectable for HIV prevention. This will improve access to advanced, long-acting therapies for Ugandans.

To fund the expansion, Qcil secured a $36 million commercial loan. As a result, the company will nearly double its output from 1.4 billion to 2.4 billion tablets per year.

Importantly, the Qcil TB drugs investment supports Uganda’s goal of reducing dependence on foreign pharmaceutical imports. It also aligns with the national Buy Uganda, Build Uganda (BUBU) policy. This government initiative promotes local manufacturing and economic resilience.

Moreover, the plant is being developed under strict Good Manufacturing Practice (GMP) guidelines. Mr. Ajay confirmed that detailed engineering is complete, and construction will soon begin.

The investment focuses on three key areas. First, Qcil will expand HIV and malaria drug production to meet up to 90% of local demand—up from the current 20%. Second, it will introduce TB drugs that are not yet available through African manufacturers. Third, the company will produce long-acting injectable medicines, which improve patient adherence.

Notably, the Qcil TB drugs investment goes beyond infrastructure. It brings hope to thousands who rely on consistent access to essential medicines. Chairman Mr. Emmanuel Katongole emphasized that the company is saving lives, not just generating profit.

Furthermore, Qcil continues to perform well financially. For the year ending March 31, 2025, the company reported Shs267.1 billion in revenue. Gross profit rose by 18% to Shs108.5 billion. At the same time, net profit increased by 22% to Shs40.7 billion.

Due to this success, the board approved a dividend of Shs13.5 per share. This is more than double last year’s dividend of Shs5.7, underscoring Qcil’s value to its investors.

Overall, the Qcil TB drugs investment is a game changer for Uganda’s healthcare system. It strengthens the country’s ability to respond to diseases like TB, HIV, and malaria.

Additionally, by introducing WHO-prequalified TB and injectable drugs, Qcil is elevating Uganda’s role in regional health supply chains. The company is also generating local employment and boosting pharmaceutical innovation.

In Africa, where drug imports still dominate, such investments are crucial. They ensure timely access to lifesaving treatments. In the long run, this will improve public health outcomes and reduce healthcare costs.

Without a doubt, the Qcil TB drugs investment sets a precedent for other firms. It shows that local production can match global quality while meeting national health priorities.

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