Lahja Nashuuta
The Ministry of Health and Social Services has confirmed that 15% of its 2025/26 budget, amounting to N$1.8 billion, has been set aside for the procurement of pharmaceuticals and clinical supplies.
Health minister Esperance Luvindao told the National Assembly on Tuesday of her ministry’s decision to cut out middlemen and move towards direct procurement of pharmaceuticals and clinical products.
She said the procurement allocation has been steadily increasing in recent years to ensure health facilities have the resources they need. “This funding is critical to strengthening our health system and ensuring essential medicines and clinical supplies are available when and where they are needed,” she said.
Despite the investment, Luvindao acknowledged persistent challenges in the procurement system, which have led to frequent stock-outs.
“For the past two financial years, the service level at the Central Medical Stores has been less than 57%, falling short of our required target of 80%,” she said.
The shortfalls, she explained, stem from a combination of factors, including a lack of long-term procurement contracts, global supply chain disruptions, increased demand for pharmaceuticals, changing disease patterns, and limited storage and warehousing capacity.
“Imagine a diabetic patient who relies on a consistent supply of insulin to manage their condition, or a mother unable to access the necessary prenatal vitamins for a healthy pregnancy. These are the realities that arise when our supply chain falters, and these are the situations we are determined to prevent,” she said.
Luvindao acknowledged inefficiencies within the ministry’s procurement and supply chain systems, including bureaucratic processes, poor accountability, substandard storage facilities, and inadequate inventory management.
She said while emergency procurement is often necessary to address shortages, it has added significant costs, particularly when sourcing from suppliers instead of manufacturers.
To address these challenges, the ministry is implementing both short- and long-term solutions. These include consolidating warehousing under a single, secure, access-controlled facility to improve efficiency, accountability and distribution speed.
“By consolidating our warehousing operations, we can streamline processes, reduce costs, and improve the security of our supply chain,” Luvindao said.
The minister maintained that these reforms align with recommendations from the police Inspector General’s 2024 security assessment and support the ministry’s broader strategy to modernise Namibia’s public health supply chain.
Planned innovations include track-and-trace barcoding systems, electronic dispensing tools, and an integrated financial management system to enhance transparency and accountability.
“Investing in modern technology and infrastructure is essential to ensure our supply chain is efficient, secure and responsive to the needs of our patients,” Luvindao said.
Photo: Heather Erdmann