Square Pharmaceuticals Ltd – a medicines company from Bangladesh – has completed construction of a modern pharmaceutical plant at the Export Processing Zones in Athi River. The factory is expected to start operations in July after securing requisite approvals and licensing.
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Square Pharmaceuticals Kenya EPZ Ltd plant will be the largest in East and Central Africa, according to Kenya’s Industrialization, Trade and Enterprise Development Cabinet Secretary, Ms Betty Maina. The factory will start with producing malaria and diabetes medicines and other essential medicines.
The investment, valued at Ksh7.5 billion, is a big achievement for Bangladesh as Square Pharma enters to a foreign market, said Mr Muhammad Zahangir Alam, chief financial officer of the company. The project’s construction began in 2019 and the civil construction work was done by September 2021.
The trial operation started in December 2021, according to the company’s annual report for 2020-21 fiscal year. Square Pharmaceuticals Kenya EPZ Ltd got the certificate of good manufacturing practice and commercial manufacturing license on 26th May from the Pharmacy & Poisons Board of Kenya, the medicines industry regulatory authority.
Kenya’s geographical position and membership in the East African Community (EAC) gives it a unique opportunity to facilitate easy access to the market of nearly 200 million people. The EAC includes Kenya, Tanzania, Uganda, Rwanda, and Burundi. The entry of Democratic Republic of Congo will expand the market even further.
The factory will create an additional 500 direct jobs in Kenya, lower costs of essential medicines and increase foreign exchange earnings from exports of medicines. The CS said this during a meeting with visiting senior officials from Bangladesh to discuss the commissioning of the Square Pharmaceuticals Ltd plant.
Ms Maina, who said the company’s $75 million (Ksh7.5 billion) investment had set a foundation for other investors from Bangladesh. Nearly 80% of the medicines market in Kenya demand is met by importing pharmaceutical products, according to Square Pharmaceuticals’ annual report for 2020-21.
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The Kenyan project was financed by a 40:60 debt to equity ratio and as part of the investment, Square Pharmaceuticals pumped $12 million (Ksh1.2 billion) into Square Pharmaceuticals Kenya EPZ Ltd.
Meanwhile, it has been agreed that Bangladesh will its extensive knowledge in pharmaceutical production, as well as set the required skills. “Bangladesh will also enter into collaboration with Kenyan universities on the training of industrial pharmacists in addition to the clinical pharmacists that Kenya is currently training to assist in management of modern pharmaceutical plants such as Square Pharmaceuticals in Kenya,” said Ms Maina.
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