ELSTOP to invest USD 50million in Uganda medical reagent manufacturing park

Uganda is set to establish a USD 50 million medical reagent manufacturing facility following a government-backed investment by ELSTOP (U) Limited aimed at boosting local production of essential health and laboratory products while reducing reliance on imports.

The development was announced on Wednesday during a multi-stakeholder meeting chaired by the State Minister for Privatization and Investment, Aminah Zawedde Mukalazi, which focused on plans to establish a medical industrial park for the production of laboratory reagents and other critical healthcare supplies.

ELSTOP Healthcare Solutions, a medical device and diagnostics company that delivers large-scale healthcare projects across Uganda, will spearhead the investment.

During the meeting, Minister Mukalazi welcomed the project and directed the Director General of the Uganda Investment Authority (UIA), Robert Mukiza, to coordinate the provision of the necessary social and physical infrastructure required for the industrial park.

Land for the facility has already been identified in Seeta, Mukono District.

Mukalazi said the establishment of the medical industrial park aligns with Uganda’s industrialisation agenda, noting that industrial parks require strong anchor investors to attract complementary industries and remain globally competitive.

“Industrial parks should have anchor investors and industries to be viable and globally competitive,” she said.

According to ELSTOP Managing Director Yitzark Shemesh, the investment is expected to significantly lower the cost of laboratory testing in Uganda by enabling local production of reagents that are currently imported at high cost.

He said local manufacturing would also reduce the country’s import bill for laboratory supplies while improving access to essential diagnostic products.

Shemesh added that the project is expected to create approximately 6,000 jobs for Ugandans once fully operational, providing a major boost to employment in the health manufacturing sector.

Construction of the first phase of the medical industrial park is expected to take 12 months.

The investment is part of Uganda’s broader strategy to promote value addition, import substitution and local manufacturing under the country’s industrialisation programme.

Officials say strengthening domestic production of medical supplies will improve the resilience of the healthcare system while positioning Uganda as a regional hub for medical manufacturing.