Ghana imports between 70 and 75 per cent of its medicine requirements at an annual cost of approximately US$500 million, prompting the government to announce a US$1 billion investment programme to expand local pharmaceutical manufacturing and reduce the country’s dependence on imported medicines.
Finance Minister Dr Cassiel Ato Forson disclosed the figures during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.
The intervention, which forms part of the government’s New Economy programme, is aimed at strengthening medicine security, conserving foreign exchange, creating industrial employment and positioning Ghana as a pharmaceutical manufacturing and export centre for West Africa.
Under the plan, pharmaceutical and biomanufacturing hubs will be established in the Eastern and Central Regions, with qualified Ghanaian and international manufacturers expected to participate through transparent leases and operating agreements.
A state-owned special purpose vehicle is expected to begin construction of the facilities in 2027.
One of the most significant aspects of the intervention is a proposed change to public procurement laws that will make locally manufactured medicines the default choice for government-funded purchases.
The proposed amendment will require public institutions to purchase medicines produced in Ghana wherever they are available in sufficient quantities and meet approved quality standards.
This would effectively make government procurement a major source of demand for local pharmaceutical manufacturers, potentially giving them the market certainty required to expand production and attract investment.
Dr Forson said the government would not allow local preference to compromise medicine quality, delivery standards or value for money.
All suppliers will be required to obtain registration from the Food and Drugs Authority (FDA) and comply with Good Manufacturing Practice standards.
The government also intends to support local manufacturers to obtain World Health Organisation prequalification, which would enable Ghanaian pharmaceutical products to compete more effectively in regional and international markets.
By 2030, the government is targeting local production of between 60 and 80 per cent of Ghana’s essential medicine requirements.
The pharmaceutical and biomanufacturing pillar alone is projected to generate approximately 20,000 direct and indirect jobs.
The intervention could have significant implications for Ghana’s healthcare system, particularly in reducing exposure to external supply disruptions, exchange-rate fluctuations and international pharmaceutical price movements.
A stronger domestic pharmaceutical industry could also create opportunities for pharmacists, scientists, laboratory technicians, engineers, researchers and other skilled professionals.
However, reducing medicine imports will require more than establishing manufacturing facilities.
Local producers will need reliable access to pharmaceutical raw materials, modern production technology, specialised equipment, research facilities, affordable long-term financing and a consistent supply of skilled personnel.
The government will also need to ensure that locally manufactured medicines remain affordable to patients and health facilities.
The proposed procurement preference will be particularly important for public health institutions, but its implementation must be accompanied by rigorous quality assurance to prevent shortages or the circulation of substandard products.
Another critical consideration is whether Ghanaian manufacturers can expand beyond producing medicines for the domestic market and develop the capacity to supply other African countries.
The government says the ultimate objective is to build a pharmaceutical export platform for West Africa rather than simply replace imported medicines with locally manufactured alternatives.
The proposed US$1 billion investment therefore represents both an industrial policy intervention and a major health security initiative.
For patients, the most important measure of success will be whether the programme improves access to safe, effective and affordable medicines.
For the pharmaceutical industry, the challenge will be translating the promised investment and procurement opportunities into sustainable production capacity.
With Ghana currently importing up to three-quarters of its medicine requirements, the government’s 2030 target presents a major test of its ability to turn domestic pharmaceutical manufacturing into a pillar of national health security.
Source: www.kumasimail.com
