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Standbic Bank Finances Ocil With USD 36 Million Facility To Expand Production of Life-Saving Medicines

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Quality Chemical Industries Limited (Qcil) has secured a USD 36 million (UGX 133 billion) debt facility from Stanbic Bank Uganda to construct a second manufacturing facility.

This new facility will not only increase production capacity for Qcil’s existing portfolio, but also enable the company to expand into new therapeutic areas, including the production of injectable medications.

Founded in 2005 and headquartered in Luzira, Kampala, Uganda, Qcil is the largest producer of World Health Organization (WHO) pre-qualified HIV/AIDS and malaria treatments in the region. It has an extensive footprint, with its products registered in 31 African countries.

The investment in expansion will strengthen Qcil’s leadership in African pharmaceutical manufacturing, support greater access to affordable medication, and build a more self-reliant healthcare ecosystem for the region.

The financing arranged by Stanbic Bank’s Corporate and Investment Banking (CIB) division comprises a USD 36 million term loan for the construction of a second WHO-compliant pharmaceutical manufacturing plant on Qcil’s existing Luzira site.

“This investment enables Qcil to scale its annual manufacturing capacity from 1.4 billion to 2.4 billion tablets, while introducing specialised production lines for TB treatments, injectables, and other innovative products,” said Emmanuel Katongole, Chairman and Co-Founder of Qcil. “We are strengthening our capacity to serve not only Uganda but also the wider African market with high-quality, affordable medicines.”

Katongole added, “Our commitment remains focused on providing sustainable healthcare solutions. With Stanbic’s support, we are positioning ourselves to meet increasing regional demand and reduce dependency on imported medicine.”

Ajay Kumar Pal, the Chief Executive Officer of Qcil, highlighted the facility’s strategic significance to the company’s continued growth. “The new factory represents a significant investment in our mission to expand access to critical medicines by manufacturing in Africa, for Africa. It will enable us to introduce specialised production for TB treatment, making Qcil the only TB medicine manufacturer in the region,” said Ajay.

He also appreciated the bank’s support. “We are grateful to Stanbic Bank Uganda for their commitment to facilitating Qcil’s growth journey,” he said.

Despite the region’s burden of disease, local pharmaceutical production remains limited. Currently, East African manufacturers meet just 10% of the demand for antiretroviral drugs for the region’s 5 million people living with HIV, and only 19% of the demand for malaria treatments despite 54 million cases reported annually. The region also records over 600,000 TB cases each year, yet has no local production capacity for TB medicines.

“Qcil is a vital link in Uganda’s healthcare value chain,” said Paul Muganwa, Executive Director and Head of CIB at Stanbic Bank Uganda. “We are pleased to have delivered a sustainable finance solution that supports Qcil’s long-term vision in driving positive healthcare impact and contributing to the region’s capacity to produce essential medicine at scale.”

Milestone Transaction

Mumba Kalifungwa, Chief Executive of Stanbic Bank Uganda, described the transaction as both bold and necessary: “This is a milestone deal—ambitious in scale, catalytic in purpose. We are honoured that Qcil entrusted us with such a strategic mandate. I also thank our CIB team for their dedication, depth, and delivery. Transactions like these demonstrate what it truly means to drive Uganda’s growth: financing what matters, for the people who matter.”

 

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