The Ministry of Health and Social Services is set to rent the Ramatex Rhino Garment Center at an estimated cost of N$10.82 million from the City of Windhoek.

The ministry has put on hold a procurement process for the construction of a new Central Medical Stores facility.

The decision also affects plans to refurbish an existing warehouse in Windhoek.

In an internal letter seen by NBC News, the ministry says the move follows concerns over low volumes of medicines and clinical supplies, which have limited the public health sector’s capacity to address disease burdens.

According to the letter, service levels at the Central Medical Stores have remained below 57% for the past two financial years.

The ministry cites low stock levels and stockouts, an inefficient procurement system, a lack of accountability within the supply chain, weaknesses in inventory management systems, storage constraints, and gaps in security and risk management practices as factors affecting performance.

To maintain access to medicines, the ministry says it has introduced sourcing strategies that include long-term contracts, annual tenders and the direct procurement of priority items. 

It is also procuring directly from international manufacturers, a move it says is aimed at reducing time and costs while securing supplies.

In efforts to identify suitable sites, the ministry evaluated the former Ramatex Garment Factory premises. It says the Ramatex Rhino Garment Centre offers the space and access roads required for distribution.

The Ministry of Works and Transport has indicated that the Ramatex option is a temporary measure, while the Health Ministry plans to establish operations at the site.

The estimated overall cost for the proposed new Central Medical Stores stands at about N$194.2 million, while the refurbishment and construction option is estimated at N$61.5 million.