Uganda's pharmaceutical industry is at risk from the growing debt crisis in Zambia.

Fears are growing that the southern African country will struggle to make repayments on foreign debt in 2022, when three big government bonds are due to be paid.

Zambia's foreign debt is close to $11bn (£8bn), almost 90% of GDP.

Cipla Uganda, the biggest manufacturer of drugs in the country, has suspended exports to Zambia, over unpaid invoices on products worth almost $12m, over two years.

In a sign, the debt crisis is worsening it is thought China is ready to take over some Zambian national assets, because of unpaid loans.

Cipla’s subsidiary in Uganda may be warning investors of problems in Zambia, but yesterday it also gave them good news about a winning a contract with South Africa and the World Health Organisation, to supply Antiretroviral and anti-malarial drugs.

The company's problems in Zambia threaten to get worse, but they may be offset by business developments elsewhere.

Talks are advanced with 16 countries, which would expand Cipla’s exports to 22 markets.