Government targets local production of up to 80% of essential medicines by 2030

The government is planning to amend public procurement laws to ensure that state institutions prioritise medicines manufactured in Ghana when making purchases with public funds.

Finance Minister Dr Cassiel Ato Forson announced the proposed policy while presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.

The measure forms part of a US$1 billion Pharmaceutical and Biomanufacturing Compact under the government's New Economy agenda, aimed at reducing dependence on imported medicines and strengthening local pharmaceutical production.

Dr Forson said Ghana currently imports between 70 and 75 per cent of its medicine requirements, at an annual cost of approximately US$500 million.

He explained that the government intends to reverse the trend by making locally produced medicines the preferred option for public procurement, provided they are available in sufficient quantities and meet approved quality standards.

Under the proposed arrangement, every cedi of public funds spent on medicines will be directed towards Ghanaian-produced alternatives where they are available and meet the required standards.

The Finance Minister said the policy draws on similar measures adopted by countries such as India, Ethiopia, Nigeria and Tanzania to support their domestic pharmaceutical industries through public procurement.

He, however, stressed that local preference would not compromise quality, timely delivery 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 will also support local pharmaceutical manufacturers to secure World Health Organisation (WHO) prequalification to enable their products to compete in international and regional markets.

As part of the investment, pharmaceutical and biomanufacturing hubs will be established in the Eastern and Central Regions, with construction expected to begin in 2027 through a state-owned Special Purpose Vehicle (SPV).

Qualified Ghanaian and international manufacturers will be engaged through transparent lease and operating agreements.

The government is targeting local production of between 60 and 80 per cent of Ghana's essential medicine requirements by 2030.

The initiative is also expected to generate approximately 20,000 direct and indirect jobs while conserving foreign exchange and positioning Ghana as a pharmaceutical manufacturing and export hub for West Africa.