This presentation at the 12th Globelics International Conference in Addis Ababa held on the 29th – 31st October 2014 discusses the probability of improved health system performance by improving the local medicine and other health requirements while also contributing to industrial development in Kenya and Tanzania. The shortage of supplies in the health industry is the reason for the poor performance of the health sector but this needs to be addressed by structural, procurement and industrial transformation in the health sector.