MoHSS defers N$194m Central Medical Stores tender in favour of Ramatex conversion

The Ministry of Health and Social Services (MoHSS) has formally recommended the deferment of a N$194 million procurement process for the construction of a new Central Medical Stores facility in Windhoek, opting instead to convert the Ramatex Rhino Garment centre into what it now intends to serve as a permanent national medical warehouse.

Procurement No. W/ONB/CPBN-12/2025, advertised on 24 October 2025 and scheduled to close on 13 January 2026, concerns the construction of a proposed new Central Medical Stores and the refurbishment of the existing warehouse in the Khomas Region.

In a letter dated 24 February 2026, Director of Health Technology and Infrastructure Management (HTIM) Thomas Mbeeli recommended that the Procurement Unit inform the Central Procurement Board of Namibia to defer awarding the tender.

Service levels below target

The ministry’s decision comes against the backdrop of ongoing medicine shortages in public health facilities.

According to the ministry, “for the past two financial years, service levels at the Central Medical Stores have remained below 57%, significantly underperforming compared to the required minimum target of 80%.”

It further acknowledged “persistent issues of low stock or stock-outs” and cited systemic challenges, including “an inefficient procurement system, lack of accountability within the supply chain, inadequate storage facilities, deficiencies in inventory management systems at all levels, and insufficient security and risk management practices regarding essential medicines and clinical supplies throughout the supply chain.”

To stabilise access to essential medicines, the ministry has adopted multiple sourcing strategies, established long-term contracts, and obtained approvals for direct procurement of priority items.

Emergency procurement measures

MoHSS confirmed it is currently procuring directly from international manufacturers and wholesalers under emergency provisions outlined in the Public Procurement Act, 2015, as amended, with regulatory exemptions granted by the Ministry of Finance.

“This approach aims to optimise time and cost savings while securing substantial quantities of urgently required supplies for extended periods,” the ministry stated.

Ramatex identified as preferred site

In reviewing infrastructure options, the ministry assessed the Ramatex complex. Although the broader site had been allocated to the National Emergency Care Centre by the City of Windhoek Council, the Ramatex Rhino Garment Centre was identified as suitable for medical storage operations.

The ministry noted that the facility offers “key infrastructure, including space and access roads, which are critical for medical product distribution.” In collaboration with the Ministry of Works and Transport (MWT), a comprehensive cost estimate was developed based on MoHSS requirements and submitted layout plans.

The estimated cost for converting the Ramatex Rhino Garment centre stands at N$108,187,543. By contrast, the total estimate for constructing a new Central Medical Stores facility amounts to N$194,217,661.38.

MWT initially estimated N$61,493,508 for the Ramatex conversion, describing it as a temporary solution. However, MoHSS indicated that “the provisional sums and specialist items costed by MWT are insufficient to support full operational capacity,” and that the higher N$108 million estimate would be more appropriate.

From the ministry’s perspective, the Ramatex site is intended to serve as a permanent base for Central Medical Stores operations.

Designs under way

The Office of the Executive Director has instructed the HTIM directorate to facilitate the implementation of the Ramatex Rhino Garment centre as the preferred Central Medical Stores facility, in coordination with MWT.

“MWT has initiated architectural and engineering designs, specifications, and bills of quantities for the alteration and renovation of the Rhino Garment Factory building to transform it into a modern Central Medical Stores compliant with international standards for medical storage warehouses,” the ministry said.

Mbeeli concluded that “the HTIM directorate recommends that the Procurement Unit inform the Central Procurement Board of Namibia to defer awarding Procurement No. W/ONB/CPBN-12/2025 concerning the construction of the proposed new Central Medical Stores and refurbishment of the existing warehouse, Khomas Region.”

If approved, the deferment will effectively halt plans for a new purpose-built facility in favour of repurposing existing infrastructure, a move the ministry argues will better support urgent efforts to strengthen medicine availability and reform the national health supply chain.