Health Minister Brian Chituwo said Zambia and the Cuban firm, Farko would start production of the drugs before June this year.
The government is currently rolling out subsidized anti-retroviral drugs to 10 000 of the 300 000 people who need them at a cost of five dollars.
A monthly dose of basic ARV treatment in private clinics and hospitals cost five dollars a month.
Chituwo said his government would this year increase its budget allocation to HIV/Aids programmes and treatment as part of its commitment to step up action against HIV/Aids.
He said Zambia received over three billion dollars for HIV/Aids from the Global Fund, the World Bank and US President George Bush's emergency Aids fund.
Zambia is one of the sub-Saharan countries worst hit by the HIV/Aids pandemic with 16% of the adult population aged between 15 and 49 years infected.
Adult mortality has shrunk to 36 years. – Sapa-DPA.
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