Uganda Considers Bailout for Struggling Vaccine Factory
Nearly half the requested funds (578 billion shillings) for the supplementary budget are earmarked for Dei Bio Pharma, a Ugandan pharmaceutical company struggling to keep its vaccine factory afloat.
Dei BioPharma is on the verge of losing its property due to a defaulted loan of $100 million from Equity Bank Kenya. This loan funded the initial investment for the vaccine factory in Matugga, Wakiso district.
Mathias Magola, the head of Dei BioPharma, first gained public attention during the peak of the COVID-19 pandemic. He introduced American Professor Safraz Niaz to Ugandan officials, convincing President Museveni of his ability to develop a coronavirus vaccine.
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Despite the initial promise, COVID-19 is no longer the major threat it once was. The government has borrowed money to acquire vaccines, some of which are now expiring. Yet, Dei BioPharma has not produced any of its vaccines.
President Museveni, alongside his then-Kenyan counterpart William Ruto, previously endorsed the Dei Bio Pharma project in both Uganda and Kenya. The Ugandan government now seeks to bail out the company after Magola reportedly requested an additional $600 million for operational needs.
This proposed bailout raises concerns. Why are taxpayer funds being used to support a struggling company with a history of unfulfilled promises? Could these funds be better allocated elsewhere?
