Haufiku backs direct procurement to end drug shortages
... as Luvindao moves to cut out middlemen
Former health minister Bernard Haufiku has reiterated his long-standing view that Namibia must bypass middlemen in pharmaceutical procurement to end chronic medicine shortages, amid sweeping reforms announced by health minister Dr Esperance Luvindao to stabilise supplies and cut costs.
Speaking after Luvindao’s ministerial address on Monday, Haufiku said Namibia had wasted millions of dollars by relying on intermediary suppliers instead of dealing directly with accredited manufacturers or through pooled procurement mechanisms.
“Direct government procurement from accredited pharmaceutical manufacturers or through pooled procurement from UNICEF or UNFPA warehouses has been my stance since I was at the ministry, and of course, others in the ministry,” Haufiku told Namibian Sun.
He recalled that during his tenure in 2017, the ministry tested the approach by purchasing HIV medicines directly from Cipla Medpro’s plant in Uganda. The direct deal saved taxpayers N$63 million, halving the cost compared to local supplier bids.
“The average price from local suppliers for these HIV medicines was N$127 million, but we managed to buy the very same quantities from Cipla for only N$64 million, all costs included,” Haufiku said.
He said some local suppliers were genuine, but too many acted as “briefcase or middleman entities” that drove up costs without adding value.
He argued that the government should embrace a hybrid system in which essential medicines such as antiretrovirals and diabetes and hypertension treatments are procured directly from manufacturers, while local suppliers handle non-essential items.
“There will always be space for other items that local suppliers may participate in,” he noted, but stressed the urgent need for price controls on life-saving drugs to guarantee sustainable supply.
Directly to the source
Haufiku’s comments come as Luvindao announced that the health ministry has begun procuring directly from 41 international manufacturers and wholesalers under emergency protocols to tackle shortages.
“By going directly to the source, we can ensure that we are obtaining the best possible prices, quality and quantities, thus stabilising the stock of our medicines and essential clinical supplies over a long duration,” Luvindao said.
The ministry is also finalising long-term contracts with manufacturers after years of piecemeal emergency purchases, which Luvindao admitted had proven “very expensive” and unreliable.
Namibia spends nearly N$1.9 billion annually, about 15.5% of the health budget, on pharmaceuticals and clinical supplies. Yet, for the past two years, service levels at the Central Medical Stores have slumped below 57%, far short of the 80% target.
Luvindao promised to consolidate warehousing into one secure, access-controlled facility and introduce modern systems such as barcoding and electronic dispensing to curb theft, spoilage and inefficiencies. “These reforms are part of a broader strategy to build a reliable, secure and cost-effective pharmaceutical supply system for Namibia,” she said.
Finally listening
On Tuesday, MP Imms Nashinge praised the ministry for “a new culture of listening” and for taking decisive steps to remove middlemen from procurement.
Speaking at parliament, he urged government to hold accountable those who had previously inflated prices, saying: “Are we just going to say, oh, things happened? We are moving forward, or are we going to make sure that those that have stolen from taxpayers... are going to be punished?”
Nashinge also raised concerns about supply chain readiness and distribution, calling on the ministry to ensure robust systems are in place to prevent future price inflation. He suggested that hospital feeding programmes be procured directly from producers to ensure quality and avoid substandard food supplies for patients.
“These are important steps as we finalise this process so that our patients are not fed with garbage,” he said.
Speaking after Luvindao’s ministerial address on Monday, Haufiku said Namibia had wasted millions of dollars by relying on intermediary suppliers instead of dealing directly with accredited manufacturers or through pooled procurement mechanisms.
“Direct government procurement from accredited pharmaceutical manufacturers or through pooled procurement from UNICEF or UNFPA warehouses has been my stance since I was at the ministry, and of course, others in the ministry,” Haufiku told Namibian Sun.
He recalled that during his tenure in 2017, the ministry tested the approach by purchasing HIV medicines directly from Cipla Medpro’s plant in Uganda. The direct deal saved taxpayers N$63 million, halving the cost compared to local supplier bids.
“The average price from local suppliers for these HIV medicines was N$127 million, but we managed to buy the very same quantities from Cipla for only N$64 million, all costs included,” Haufiku said.
He said some local suppliers were genuine, but too many acted as “briefcase or middleman entities” that drove up costs without adding value.
He argued that the government should embrace a hybrid system in which essential medicines such as antiretrovirals and diabetes and hypertension treatments are procured directly from manufacturers, while local suppliers handle non-essential items.
“There will always be space for other items that local suppliers may participate in,” he noted, but stressed the urgent need for price controls on life-saving drugs to guarantee sustainable supply.
Directly to the source
Haufiku’s comments come as Luvindao announced that the health ministry has begun procuring directly from 41 international manufacturers and wholesalers under emergency protocols to tackle shortages.
“By going directly to the source, we can ensure that we are obtaining the best possible prices, quality and quantities, thus stabilising the stock of our medicines and essential clinical supplies over a long duration,” Luvindao said.
The ministry is also finalising long-term contracts with manufacturers after years of piecemeal emergency purchases, which Luvindao admitted had proven “very expensive” and unreliable.
Namibia spends nearly N$1.9 billion annually, about 15.5% of the health budget, on pharmaceuticals and clinical supplies. Yet, for the past two years, service levels at the Central Medical Stores have slumped below 57%, far short of the 80% target.
Luvindao promised to consolidate warehousing into one secure, access-controlled facility and introduce modern systems such as barcoding and electronic dispensing to curb theft, spoilage and inefficiencies. “These reforms are part of a broader strategy to build a reliable, secure and cost-effective pharmaceutical supply system for Namibia,” she said.
Finally listening
On Tuesday, MP Imms Nashinge praised the ministry for “a new culture of listening” and for taking decisive steps to remove middlemen from procurement.
Speaking at parliament, he urged government to hold accountable those who had previously inflated prices, saying: “Are we just going to say, oh, things happened? We are moving forward, or are we going to make sure that those that have stolen from taxpayers... are going to be punished?”
Nashinge also raised concerns about supply chain readiness and distribution, calling on the ministry to ensure robust systems are in place to prevent future price inflation. He suggested that hospital feeding programmes be procured directly from producers to ensure quality and avoid substandard food supplies for patients.
“These are important steps as we finalise this process so that our patients are not fed with garbage,” he said.
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