BACKGROUND

In 2008, the Government of Mozambique (GRM) through the Ministry of Health (MoH) conducted a Warehousing and Distribution Needs Assessment. The assessment found that the MoH was spending substantial funds annually to rent warehouse space nationwide and recommended the MoH adopt a regional/district distribution model in place of the present national/provincial/district structure. The assessment proposed three main warehouses located in the northern (Nampula), southern (Zimpeto - Maputo), and central (Beira) regions. Based on this assessment, in 2013, the MoH issued the Pharmaceutical Logistics Strategic Plan (PELF), which covers the policy, infrastructure, and supply-chain needs to achieve lasting improvements in commodity security. USAID aligns support in the pharmaceutical sector to this plan. Given the poor state of warehouse infrastructure and the large investments that USAID and other US Government (USG) agencies are making in commodities, supporting the construction of warehouses will provide support to the planned distribution system, while simultaneously safeguarding USG and GRM commodity investments. Furthermore, investing in regional warehouses, such as Zimpeto, will enable long term cost-savings by eliminating rental costs currently paid by the USG and GRM.

PROGRAM DESCRIPTION

In June 2018, USAID/Mozambique awarded a Design-Build contract to Teixeira Duarte, a local construction firm, for the Design and Construction management of the Zimpeto Warehouse extension. This project was made possible by a unique partnership between the GRM, Global Fund (GF) and USAID.  The GRM provided funds from a GF grant to USAID who, in turn is leveraging in-kind support to facilitate the successful execution of the award.  USAID will also equip the warehouse extension through USAID implementing partner, the Global Health Supply Chain-Procurement and Supply Management Project.  

EXPECTED RESULTS/IMPACTS

The warehouse extension will be completed in mid-2020.  When complete, capacity at the Zimpeto warehouse will increase from 4,500 pallet positions to 8,500+. The warehouse will likely continue to serve as the central warehouse for the next few years, while the regional and intermediary warehouse network is built out.