SADC to Revolutionise Regional Healthcare Procurement with SPPS Business Plan
The Southern African Development Community (SADC) is set to transform healthcare procurement across the region with the launch of the SADC Pooled Procurement Services (SPPS) Business Plan. This initiative aims to enhance access to quality healthcare products, reduce costs, and boost regional self-reliance.
The development of the SPPS Business Plan follows years of strategic deliberations, dating back to early discussions in 2013. Ministerial decisions since 2017 have progressively shaped the framework, culminating in a validation workshop held in Johannesburg from February 10-12, 2025.
The workshop brought together key stakeholders, including representatives from SADC Member States, international partners such as the United Nations Population Fund (UNFPA), UNITAID, the Global Fund, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
In his opening remarks, Zimbabwe’s Acting Director of Pharmacy Services highlighted the SPPS as a strategic response to fragmented national procurement processes and increasing reliance on external funding. The SPPS Business Plan incorporates innovative financing models such as national budget contributions, procurement-based service fees, and donor support.
Workshop participants endorsed a hybrid model for procurement that blends coordinated information-sharing, group contracting, and centralized purchasing. This approach is expected to leverage economies of scale, encourage local pharmaceutical manufacturing, and facilitate better negotiations for pricing and supply chain stability.
The roadmap for SPPS implementation spans three to five years and includes key milestones such as financial projections, risk mitigation strategies, resource mobilization, and governance structures. A major outcome of the workshop was the recommendation to establish SPPS as an autonomous Special Purpose Vehicle with a dedicated governance body drawn from regional experts.
Tanzania’s Medical Stores Department (MSD) reaffirmed its commitment to supporting SPPS, emphasizing that collaboration with the SADC Secretariat has already led to significant achievements, including SPPS guidelines and successful delivery of health products to Member States.
The SADC Secretariat’s Director of Social and Human Development, Ms. Duduzile Simelane, acknowledged the vital financial and material support from UNFPA, UNITAID, and the European Union in developing the SPPS Business Plan.
As the global landscape shifts, SADC’s pooled procurement initiative positions the region as a leader in integrated healthcare delivery. The collective vision is to create a robust procurement framework that strengthens local industries, ensures equitable access to essential medicines, and enhances health outcomes for millions across Southern Africa.
