The National Department of Health has moved to reassure stakeholders about antiretroviral (ARV) shortages after reports that two suppliers in the current ARV tender have entered business rescue. Department spokesperson Foster Mohale said the country is not facing a supply crisis and that contingency plans are already in motion.
Mohale said supply disruptions linked to financially distressed suppliers are not new. He argued they have long been anticipated in procurement planning. The department has historically held a buffer stock to reduce risk. He said improved monitoring systems now support the same objective.
The reassurance comes as South Africa runs the world’s largest HIV treatment programme. Any interruption in ARV availability can trigger treatment breaks and raise the risk of drug resistance.
The ARV Supply And the Tender Risk Strategy
Mohale said the tender was deliberately awarded to multiple suppliers as a risk-mitigation measure. The aim is to protect continuity if one supplier falls short. He said this structure allows the department to quickly switch volumes to alternative contracted manufacturers.
After being notified of supply challenges, officials engaged the affected companies to establish the causes and expected timelines. At the same time, the department activated contingency measures and asked other awarded suppliers to increase production and deliveries to cover any gaps.
Business Day reported last week that the suppliers in business rescue are Barrs and Innovata, both subsidiaries of Avacare Health. The report said the two firms have been unable to reliably supply the state under parts of the latest Aids drug tender.
Provinces Report Three Months of Stock on Hand
The department said current stock levels remain sufficient and that provinces have enough of the affected ARV medicines to meet short-term demand. Based on consumption data and stock monitoring, Mohale said provinces hold about three months of expected demand for the affected products. Stock levels are being monitored at both the national and provincial levels.
The department also underlined the stakes. Mohale said officials understand the consequences of ARV shortages and will not allow such a situation to arise. The message to clinicians and patients was direct: South Africa is not about to run out of ARVs.
Procurement Scrutiny
While the department’s tone is reassuring, the situation will sharpen focus on supplier vetting, contract management, and early warning systems in essential medicine tenders. Business rescue can stabilise a distressed business, but it can also expose operational constraints in manufacturing and distribution.
For healthcare providers, the key issue is predictability. If contingency volumes must be sustained for months, provinces will require tight stock reporting and rapid replenishment cycles. For industry, the episode may also drive debate about tender design, capacity checks, and how quickly production can be ramped up across a multi-supplier panel.
For now, the department is leaning on two pillars. The first is a diversified supply. The second is close monitoring of consumption and stock. In its view, those safeguards keep South Africa’s ARV supply steady, even when individual suppliers encounter challenges.
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