The Global Fund to Fight AIDS, Tuberculosis and Malaria is in discussions with the government of Namibia after authorities redirected funds originally intended for the construction of a new national medical warehouse to instead lease an existing industrial facility in the capital.
The funding, worth about N$194 million (approximately $10.5 million) had been approved to build a central medical store near Windhoek Central Hospital, aimed at strengthening the country’s pharmaceutical supply chain.
However, the Ministry of Health and Social Services has opted to lease part of the former Ramatex textile factory in the Otjomuise area instead. The facility will reportedly be rented at a cost of about N$100,000 per month and renovated to function as the central medical storage hub.
The change in plans came after the government suspended a public tender process that had been launched in October 2025 for the construction of the new warehouse. The bidding process closed in January 2026 and an evaluation report had already been completed before the project was halted.
According to government correspondence, Thomas Mbeeli, director of health technology and infrastructure management, recommended that the Central Procurement Board of Namibia delay awarding the construction contract for the proposed facility and the refurbishment of the existing warehouse.
The decision has raised concerns among some bidders and officials involved in the procurement process, who argue that leasing a facility could prove more costly over time compared to building a permanent structure using donor funding.
They also point out that the Global Fund had already approved architectural plans for the warehouse, which was expected to modernize the storage and distribution of medicines and medical supplies across Namibia.
Responding to questions, Global Fund spokesperson Ravini Senanayake confirmed that discussions with the Namibian authorities are ongoing.
“In a nutshell, we are well aware of the situation and have been working closely with the government on it since late last year,” she said.
The new central medical store was originally planned for an open site on health ministry land between Katutura and Windhoek Central Hospital, a location intended to improve access and logistics for national medical supply distribution.
Authorities have yet to publicly explain the reasons behind the shift to leasing the former textile factory, though the government plans to renovate the building to accommodate the country’s pharmaceutical storage needs.
The development has sparked debate over cost efficiency, donor expectations and long-term infrastructure planning within Namibia’s health sector.
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