TestCloud
Prep • Practice • Perform
Log In

Akums Drugs & Pharmaceuticals Limited and Government of Zambia Form Joint Venture to Establish Pharmaceutical Manufacturing Facility by 2025.

International | Dated: 27 Aug 2025

In August 2025, India’s leading Contract Development and Manufacturing Organisation (CDMO), Akums Drugs and Pharmaceuticals Limited, signed a framework agreement with the Government of Zambia (GRZ) to set up a joint venture (JV) pharmaceutical manufacturing facility in Zambia. The facility will boost medicine supply for Zambia’s health programs and regional exports.

🎯 Key Highlights:

  • - The new pharmaceutical project will be executed through a Joint Venture (JV) between Akums Drugs and Pharmaceuticals Limited and the Government of Zambia (GRZ). Akums will hold a majority stake of 51%, while the remaining 49% will be owned by Zambian state instrumentalities.
  • - As per the agreement, the JV company is scheduled to be incorporated by December 2025, with the new greenfield pharmaceutical facility expected to commence operations by 2028. This timeline aligns with Zambia’s national health program objectives to enhance domestic drug production capacity.
  • - The proposed facility will focus on manufacturing a wide range of medicines including oral solids, liquid injectables, and beta-lactam products. These medicines will primarily support Zambia’s healthcare requirements and will also help in reducing dependency on imported drugs, ensuring affordable and accessible treatments.

💡 Other Important Facts:

  • (i) Under the procurement arrangement, the Government of Zambia (GRZ) has committed to purchasing medicines worth a minimum aggregate value of USD 50 million (approximately Rs 425 crore) over the period 2026–2027. These medicines will be manufactured and supplied from Akums’ facilities in India until the Zambian plant becomes operational.
  • (ii) Upon establishment, the facility will act as a pharmaceutical hub for Southern Africa. Medicines produced here will be exported to neighboring countries such as Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique, strengthening India’s pharmaceutical footprint in the African continent.
  • (iii) This partnership highlights India’s role as a global healthcare partner. The Akums-GRZ JV will not only create jobs in Zambia but also enhance healthcare infrastructure and reduce drug shortages. It signifies a model for international collaboration in pharmaceuticals between India and African nations.

📚 Test Your Knowledge:

Recently, India’s Akums Drugs and Pharmaceuticals Limited signed a Joint Venture (JV) agreement with which government to establish a pharmaceutical manufacturing facility?

Correct Answer: Government of Zambia (GRZ)

🚀 Quick Recap:

About Zambia

  • Capital : Lusaka
  • President : Hakainde Hichilema