Ministry drops N$194m medical stores plan for cheaper Ramatex overhaul
The health ministry has decided to convert the Ramatex Rhino Garment Centre into a permanent national medical warehouse, rather than spend N$194 million on building a new Central Medical Stores facility in Windhoek.
The cost of converting the Ramatex building is estimated at around N$108.2 million.
A tender for the proposed construction of a new medical storage facility and the refurbishment of the existing warehouse in the Khomas region was advertised on 24 October 2025 and closed on 13 January.
However, in a letter dated 24 February to the Central Procurement Board of Namibia, Thomas Mbeeli, director for health care technology and facility management, recommended deferring the tender.
Mbeeli said his office had instructed the directorate to facilitate the implementation of the Ramatex Rhino Garment Centre as the preferred Central Medical Stores facility, in coordination with the works ministry.
Mbeeli confirmed the works ministry has initiated architectural and engineering designs, specifications and bills of quantities for the alteration and renovation to transform the Ramatex complex into a modern medical store compliant with international standards for medical storage warehouses.
Ramatex identified as preferred site
In December 2017, the then health minister, Dr Bernard Haufiku, announced that part of the Ramatex complex would be designated to house the storage facility as part of efforts to improve service delivery, capacity and efficiency.
Although the health ministry identified the Ramatex Rhino Garment Centre, the broader site had been allocated to the National Emergency Care Centre by the City of Windhoek Council.
Available information indicates that as early as October 2025, the health ministry was in discussions with the Windhoek municipality regarding the use of the Ramatex hall for the storage of medicine.
Mbeeli said the Ramatex facility offers key infrastructure, including space and access roads, which are critical for medical product distribution.
He also said the health ministry, together with the works ministry, has developed a comprehensive cost estimate based on the requirements and submitted the layout plans.
According to Mbeeli, the estimated cost of converting the dormant complex is about N$108.2 million, while the estimated cost of constructing a new medical storage facility is about N$194.2 million.
He added that the works ministry initially estimated about N$61.5 million for the Ramatex conversion, describing it as a temporary solution.
However, the health ministry indicated that the provisional sums and specialist items costed by the works ministry are insufficient to support full operational capacity.
The ministry views the Ramatex site as a permanent base for Central Medical Stores operations and suggested that N$108 million would be an appropriate cost, Mbeeli noted.
Service levels below target
The health ministry’s decision comes amid ongoing shortages of medicines in public health facilities.
"For the past two financial years, service levels at the Central Medical Stores have remained below 57%, significantly underperforming compared to the required minimum target of 80%," the health ministry confirmed.
It further acknowledged “persistent issues of low stock or stock-outs” and cited systemic challenges.
These include “an inefficient procurement system, lack of accountability within the supply chain, inadequate storage facilities, deficiencies in inventory management systems at all levels, and insufficient security and risk management practices regarding essential medicines and clinical supplies throughout the supply chain.”
To stabilise access to essential medicines, the ministry has adopted multiple sourcing strategies, established long-term contracts and obtained approvals for direct procurement of priority items.
The health ministry said it is currently procuring directly from international manufacturers and wholesalers under the emergency provisions of the Public Procurement Act, 2015, as amended, with regulatory exemptions granted by the finance ministry.
“This approach aims to optimise time and cost savings while securing substantial quantities of urgently required supplies for extended periods,” the ministry stated.
