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The company is establishing a R&D hub, aimed at ramping-up local pharmaceutical manufacturing
Kampala, Uganda | RONALD MUSOKE | Uganda’s pharmaceutical manufacturer, Quality Chemical Industries Limited (Qcil) paid Shs 19.8 billion in taxes to the government in 2025, up from Shs 15.1 billion a year earlier, following record growth in profits.
The company reported a gross profit of Shs 108.5 billion for the year ending March 31, 2025, an 18% rise from the previous year, while net profit climbed 22% to Shs 40.7 billion, driven by improved efficiency and tighter financial controls.
“This performance reflects our continued operational focus and our public health mission,” CEO Ajay Kumar Pal said at the firm’s annual general meeting held in Kampala on July 17. “It is a testament to the team’s dedication and disciplined execution.”
As such, Qcil’s board proposed a dividend of Shs 13.5 per share, more than double the Shs 5.7 paid out in the previous financial year. The move signals the company’s confidence in its growth trajectory and its intention to reward shareholders.
Board Chairman Emmanuel Katongole said the pharmaceutical company maintained stability in a complex operating environment shaped by regional economic pressures and shifting global supply chains.
“Our improved bottom line is a testimony to the strength of our operating model and the collective effort of our team, underpinned by sound governance and long-term planning,” Katongole told the shareholders.
The company’s revenue remained stable at Shs 267.1 billion, supported by a diversified product mix and demand from both domestic and export markets. Qcil sold more than 17 million treatment doses to over 15 countries in sub-Saharan Africa, reinforcing its role as a key regional supplier of essential medicines.
US$36 million loan to finance new factory
To meet growing demand and widen its product offering, Qcil secured a US$36 million loan from Stanbic Bank Uganda to finance the construction of a second manufacturing facility at its base in Luzira, on the southern outskirts of Kampala. The new plant will more than double the company’s current capacity from 1.4 billion to 2.4 billion tablets annually, according to Pal.
“This investment will nearly double our factory footprint and allow us to expand into new treatment areas critical to public health, including tuberculosis (TB), long-acting injectables, and additional HIV and malaria therapies,” Pal said.
The facility will add production lines for TB treatments, which are currently not manufactured anywhere on the African continent. The firm also plans to introduce long-acting injectable therapies, increasingly seen as the next frontier in managing HIV and other chronic conditions such as diabetes and hypertension.
Research &Development
Alongside physical expansion, Qcil is establishing a research and development (R&D) hub, aimed at supporting local drug formulation, pre-technology transfer activities, and licensing partnerships with international pharmaceutical firms.
“The R&D platform will help us innovate and develop treatments locally, enabling Uganda to become more self-reliant in the supply of quality-assured medicines,” Pal said.
Qcil’s new R&D facility will focus on developing advanced dosage forms for infectious and non-communicable diseases, including hepatitis and cardiovascular illnesses, as part of its broader effort to address large-scale health burdens across the region. Pal said the company has historically focused on “big diseases” affecting millions, including HIV, malaria, and TB, and plans to retain that strategy going forward.
Founded in 2005, Qcil manufactures World Health Organization (WHO)-prequalified antiretrovirals and antimalarials, supplying both local and international treatment programmes. The company’s model relies heavily on contracts with government-run health agencies and global health organisations.
Its new strategy aims to boost regional self-sufficiency in pharmaceuticals, reduce dependence on imports, and strengthen Africa’s health security following lessons from the COVID-19 pandemic.
“From the outset, our vision was to build an African pharmaceutical company that could tackle the continent’s biggest health challenges,” said Katongole.
Qcil’s strategic positioning is expected to benefit from continental integration efforts, particularly the African Continental Free Trade Area (AfCFTA), which seeks to eliminate barriers to intra-African trade in health products.
As part of its expansion plan, the company is also committing to environmental sustainability. Qcil aims to achieve carbon neutrality by 2030, and has started investing in energy-efficient technologies and sustainable manufacturing processes.
Katongole said the new facility will create additional employment opportunities and support skills development in Uganda’s life sciences sector. The company is also investing in training and leadership development to prepare its workforce for future growth.
However, the company has not disclosed when construction of the second facility will begin, but executives say detailed engineering designs are complete and preparatory work is underway.
Regional outlook
Qcil’s growth comes at a time when African governments and development partners are pushing to increase local manufacturing of medicines and vaccines. Despite rising demand, Africa still imports more than 70% of its pharmaceuticals, according to the African Development Bank.
Qcil is among a handful of African pharmaceutical firms attempting to reverse that trend through vertical integration, innovation, and partnership-led scaling. Its success could serve as a blueprint for industrial health policy in low- and middle-income countries seeking to boost local pharmaceutical manufacturing capacity.
