The government is taking steps to make locally manufactured medicines the preferred choice for public institutions, with plans to amend existing public procurement laws to support the domestic pharmaceutical industry.
The proposed changes will require state institutions to give preference to medicines produced in Ghana when spending public funds, provided the products are available in adequate quantities and meet the required quality standards.
Finance Minister Dr Cassiel Ato Forson announced the policy during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.
The initiative forms part of a US$1 billion Pharmaceutical and Biomanufacturing Compact under the government’s New Economy agenda, which seeks to expand domestic pharmaceutical production and reduce the country’s reliance on imported medicines.
Dr Forson disclosed that Ghana currently imports between 70 and 75 per cent of its medicine requirements, spending approximately US$500 million annually.
He said the government intends to change this situation by directing public spending towards locally manufactured alternatives, ensuring that Ghanaian pharmaceutical companies benefit from the country’s procurement expenditure.
The Finance Minister noted that the policy takes inspiration from countries including India, Ethiopia, Nigeria and Tanzania, which have introduced similar procurement measures to strengthen their domestic pharmaceutical sectors.
He was, however, quick to emphasise that the preference for local products would not come at the expense of quality, timely delivery or value for money.
Manufacturers and suppliers will be required to secure registration from the Food and Drugs Authority (FDA) and meet Good Manufacturing Practice requirements before their products can qualify under the arrangement.
Government will also assist domestic pharmaceutical companies to obtain World Health Organisation (WHO) prequalification, a move expected to improve their competitiveness in international markets and create opportunities for exports across the region.
As part of the broader investment programme, pharmaceutical and biomanufacturing hubs will be established in the Eastern and Central Regions, with construction scheduled to commence in 2027.
The facilities will be developed through a state-owned Special Purpose Vehicle (SPV), with qualified Ghanaian and foreign manufacturers expected to participate under transparent lease and operating agreements.
Government is targeting the production of between 60 and 80 per cent of the country’s essential medicine requirements locally by 2030.
The programme is also expected to create about 20,000 direct and indirect jobs, reduce pressure on foreign exchange reserves and position Ghana as a major pharmaceutical manufacturing and export centre for West Africa.
By: Rainbowradioonline.com/Ghana