R1.6bn for SA-Swiss pharmaceuticals project

Project Ketlaphela, the Minister said, would be jointly funded by Lonza and a number of State institutions, including the Industrial Development Corporation and Nexa subsidiary Pelchem.

Pandor said Ketlaphela's initial focus would be on HIV/Aids, tuberculosis and malaria, while noncommunicable diseases such as diabetes, hypertension and cancer would later be added. "The project is in line with government's goal of addressing HIV/Aids through the local and cost effective-production of ARVs," she noted, adding that Ketlaphela will reduce the country's dependence on imported drugs and "provide security of supply of priority drugs, stable pricing with less sensitivity to exchange rates." Pandor said that the consortium had entered negotiations with the South African government with the aim of delivering the first locally manufactured ARVs from 2016.

The 50% State-owned facility outside Pretoria is expected to create 2 200 direct and indirect jobs in the formal and informal sector. Construction is expected to start in early 2013. Trade and Industry Minister Rob Davies said South Africa consumed R25-billion worth of drugs a year, the majority of which are imported from the US and Europe. "If South Africa were to continue to import ARVs at the current rate, in 2016, we would have to import 1 430 t of AIPs at a cost of R4.7-billion at current exchange rates," Davies told Engineering News, adding that the new facility was expected to manufacture 40% of this in its first phase, a possible second phase would increase this percentage further.

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