How to open a pharmacy in Zambia

With the rising demand for pharmaceutical products in Zambia, many individuals are considering opening their own pharmacy stores. However, navigating the requirements can be daunting. Like any other business, establishing a pharmacy involves specific procedures and regulations that must be adhered to.

Opening a pharmacy in Zambia necessitates compliance with various legal, regulatory, and professional standards. This guide will walk you through the essential steps and requirements.

Steps to Open a Pharmacy in Zambia

1. Health Professions Council of Zambia (HPCZ) Registration

• The HPCZ oversees the regulation of healthcare professionals and facilities, including pharmacies. To legally operate, you must register your pharmacy with this council.
• Process:
  • Submit a formal application to the HPCZ.
  • Pay the required registration fees.
  • Ensure your premises pass the HPCZ inspection.

1. Business Registration with the Patents and Companies Registration Agency (PACRA)

• All businesses in Zambia must register with PACRA to operate legally.
• Steps:
  • Select a unique name for your pharmacy.
  • Register your business as a limited company, sole proprietorship, or partnership.
  • Acquire the business certificate from PACRA.

1. Licensing from the Zambia Medicines Regulatory Authority (ZAMRA)

• ZAMRA is responsible for regulating the safety, efficacy, and quality of medicines in Zambia. You need a retail pharmacy license from them.
• Requirements:
  • Submit an application for the retail pharmacy license.
  • Ensure your premises meet ZAMRA’s standards regarding location, space, storage, and security.
  • Provide qualifications for the supervising pharmacist.

1. Hiring a Qualified Pharmacist

• Your pharmacy must have a registered pharmacist overseeing operations, who is licensed by HPCZ.
• Qualifications:
  • A degree in Pharmacy from an accredited institution.
  • Registration with HPCZ.
  • A valid practicing license from HPCZ.

1. Premises Requirements

• Your pharmacy’s physical location must meet specific criteria:
  • Sufficient space for storing and dispensing medications.
  • Proper ventilation, lighting, and temperature control.
  • Security measures for safeguarding controlled substances.

1. Municipal Health Permit

• Obtain a health permit from the local authority where your pharmacy will be located. The council may conduct an inspection to ensure compliance with health and safety regulations.

1. Tax Registration with the Zambia Revenue Authority (ZRA)

• Register your business with ZRA for tax purposes, which includes corporate taxes, VAT (if applicable), and other relevant taxes.
• Steps:
  • Obtain a Taxpayer Identification Number (TPIN).
  • Register for VAT if your pharmacy qualifies based on turnover.

1. Compliance with Good Pharmacy Practice (GPP)

• Your pharmacy must adhere to Good Pharmacy Practice standards as outlined by ZAMRA and HPCZ, including:
  • Proper handling and storage of medications.
  • Maintaining accurate records of prescriptions and sales.
  • Ensuring patient confidentiality and offering counseling.

1. Importation of Medicines (if applicable)

• If you plan to import medicines, obtain the necessary permits from ZAMRA, ensuring compliance with regulatory standards.

1. Stock and Inventory Management
   • Ensure all medicines sold are approved by ZAMRA and establish an efficient inventory management system to track expiration dates and stock levels. Maintain records of all purchases and sales.
2. Opening a Bank Account and Securing Financing
   • Establish a corporate bank account for your pharmacy. You may require initial capital for:
   • Setting up your premises.
   • Purchasing initial stock.
   • Covering operational costs, including staffing and marketing.
3. Insurance
   • Consider obtaining insurance for:
   • Public liability.
   • Stock protection.
   • Property damage.

Estimated Costs to Open a Pharmacy in Zambia

The cost of launching a pharmacy in Zambia can vary based on several factors, including location, size, and services offered. Below is a breakdown of estimated costs:

1. Business Registration and Licensing Fees

• PACRA Registration: Approximately ZMW 750 – ZMW 2,500 ($35 – $130) based on the business structure.
• HPCZ Registration: Initial fees may range from ZMW 3,000 – ZMW 5,000 ($150 – $250).
• ZAMRA License: ZMW 4,000 – ZMW 8,000 ($200 – $400) depending on pharmacy size.
• Municipal Health Permit: ZMW 1,000 – ZMW 2,000 ($50 – $100).

1. Rental or Purchase of Premises

• Monthly Rent: Varies greatly; in Lusaka, it can range from ZMW 5,000 to ZMW 20,000 ($250 – $1,000). Smaller towns may have lower rents.
• Initial Deposit: Typically, three months’ rent as a deposit, costing between ZMW 15,000 – ZMW 60,000 ($750 – $3,000).

1. Renovation and Furnishing

• Renovation Costs: Necessary renovations can range from ZMW 20,000 – ZMW 50,000 ($1,000 – $2,500).
• Furnishing: Costs for shelving, counters, and cabinets can amount to ZMW 10,000 – ZMW 30,000 ($500 – $1,500).

1. Equipment

• Essential equipment, including refrigerators and computers, can range from ZMW 15,000 – ZMW 30,000 ($750 – $1,500).

1. Initial Stock of Medicines

• Depending on your pharmacy’s size and product range, initial stock can cost between ZMW 100,000 – ZMW 300,000 ($5,000 – $15,000).

1. Salaries

• Pharmacist salaries typically range from ZMW 8,000 – ZMW 15,000 ($400 – $750) monthly.
• Support staff (cashiers, sales assistants) may earn ZMW 3,000 – ZMW 5,000 ($150 – $250) each month, with 1-3 staff members needed.

1. Utilities and Recurring Costs

• Monthly utilities can range from ZMW 1,000 – ZMW 2,500 ($50 – $125).
• Internet and communication: ZMW 500 – ZMW 1,500 ($25 – $75) monthly.
• Insurance: Annual costs between ZMW 5,000 – ZMW 10,000 ($250 – $500), depending on coverage level.

1. Miscellaneous Costs

• Marketing and branding: ZMW 2,000 – ZMW 10,000 ($100 – $500) for initial promotions.
• Legal and accounting fees: ZMW 5,000 – ZMW 10,000 ($250 – $500) for business setup and compliance.

Total Estimated Startup Costs

Based on the aforementioned breakdown, here are the estimated costs:

Category	Low Estimate (ZMW)	High Estimate (ZMW)
Business Registration & Licensing	8,750	17,500
Premises (3 months rent + deposit)	15,000	60,000
Renovation & Furnishing	30,000	80,000
Equipment	15,000	30,000
Initial Stock	100,000	300,000
Staff Salaries (3 months)	33,000	60,000
Utilities & Other Recurring Costs	4,500	12,000
Miscellaneous (Marketing, Legal)	7,000	20,000

Total Estimated Startup Cost:

• Low-End Estimate: ~ZMW 213,250 ($10,665)
• High-End Estimate: ~ZMW 579,500 ($28,875)

Additional Considerations

• Location: Pharmacies in high-traffic urban areas tend to incur higher costs, especially for rent and staffing.
• Size: Larger pharmacies with extensive services will require a more substantial investment in stock and equipment.
• Drug Importation: Importing medicines will incur additional costs such as import duties and shipping fees.

This overview provides a general idea of the expenses involved, but actual costs may vary based on individual circumstances and fluctuations in pricing.

Conclusion

Establishing a pharmacy in Zambia involves navigating a range of regulatory requirements, from registering with the HPCZ and ZAMRA to hiring qualified personnel. By following the outlined steps and ensuring compliance with the legal framework, you can create a pharmacy that operates effectively and safely within the law.