Uganda: MPs approve Shs18.3 billion deposit for Coronavirus vaccines

Parliament has approved Shs18.3 billion deposit for COVID-19 vaccine being purchased from Serum Institute of India.

The fund was part of the supplementary budget of Shs292 billion that Parliament passed on February 11.

Ministry of Health is purchasing 18 million doses of AstraZeneca vaccine to inoculate 9 million Ugandans.

The Ministry said it will give priority to health workers, security personnel, teachers and people aged 50 years and above who are considered most vulnerable to COVID-19 infection and illness.

Dr Jane Ruth Aceng, the Health minister, in a February 11 statement said of the 18 million doses ordered, only 400,000 doses will be procured at $4 (Shs14, 600) per dose. About 400,000 doses will cost Uganda $1.6 million (Shs5.8 billion).

This means the remaining 17.6 million doses will be procured at $7 (Shs25, 550) per dose and 17.6 million doses will cost Uganda $123.2 million (Shs449.4 billion).

Uganda requires a total of $124.8 million (about Shs455.4b) to purchase AstraZeneca from India to vaccinate around 20 per cent of the population.

However, according to Economic Times website, an Indian English-language business-focused daily newspaper, the Serum Institute of India (SII) has sold the same type of vaccine to countries such as South Africa at $5.25 (Shs19, 150).

This means Uganda is paying an excess of $1.75 (Shs6, 350) for each.

Dr Aceng said they have observed the differences in pricing, but said they are still waiting for the specific price that SII will tell them.

“…we have observed on the Covid-19 vaccine dashboard, difference in the price offered to countries by the Serum Institute. These prices vary between $3 (Shs10, 900) to $10 (Shs14,600). The final payment for vaccines will be based on the invoice value provided to Uganda,” she said in the February 11 statement.

About the plan to complete the remaining payment after the Shs18.5 billion deposit, Dr Aceng said the response from SII will determine the next move.

“If we make a down payment, they [SII] will give us a delivery schedule and we will have to pay against the delivery schedule because they can’t give us all these doses at once [due to high global demand],” she said.

The World Health Organisation (WHO) reported last week that it has approved the vaccine. The vaccine will have to get another approval by the country’s drug regulator (National Drug Authority) as WHO procedure requires.

Dr David Nahamya, the secretary to the Authority told Daily Monitor that they are waiting for application from the vaccine manufacturer to assess for safety and efficacy before use in the country.