STAFF WRITER
Minister of Health and Social Services Esparanca Luvindau says the government has saved over N$221 million through direct procurement of pharmaceutical services and is now finalising long term engagements with supplies to effectively cut out the middle men in the future.
Addressing a press conference on Monday Luvindau said the Ministry’s efforts to procure directly from international manufacturers and wholesalers are proving fruitful.
She said the government has engaged with 41 prequalified manufacturers and wholesalers, and received offers for hundreds of essential medicines and clinical supplies.
The offers were evaluated in Phase 1 and anticipate significant cost savings and improved supply security, Luvindau said.
“In relative terms, these offers have potentially generated savings of approximately N$221494 000 compared to the weighted average intermediary prices. If compared to the maximum benchmark often used in intermediary-led emergency procurement, the savings are significantly higher.
In both cases, our efforts have proven that better value for money and more stock of the same quality could be procured for the benefit of the public health system and the Namibian public. We look forward to providing detailed and comprehensive updates to the public once this procurement process is finalized,” she said.
Luvindau said the Ministry is now procuring directly from international manufacturers and wholesalers under emergency provisions of the Public Procurement Act 15 of 2015.
She said this approach is aimed at saving time and money, while securing large quantities of urgently needed supplies.
“ By going directly to the source, we can ensure that we are obtaining the best possible prices, quality and quantities, thus stabilizing the stock of our medicines and essential clinical supplies over a long duration
“A key lesson from the past procurement experience is the importance of long-term contracting with manufacturers. Currently, the Ministry has no consistent long-term supply arrangements in place for many critical items,” she said.
The Minister said the Central Procurement Board of Namibia (CPBN), is now finalising the two-year contracts for general pharmaceuticals, following the conclusion of legal challenges that were launched by some suppliers four years ago.
“Prior to the long-term agreements, the Ministry has had to rely on piecemeal emergency procurements, which offered neither price predictability nor guaranteed availability. This situation has now changed for the better. We are now moving away from a reactive approach to a proactive one, where we anticipate demand and secure long-term contracts with manufacturers and contractors to ensure a steady supply of essential medicines.
The Ministry is now actively working to stabilize national stock levels, after which we will transition towards a structured supply planning model, anchored by long-term contracts pegged to manufacturer prices,” she said
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