Ghana follows Nigeria’s lead as gov’t targets local production of 80% of essential medicines by 2030

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

The plan is aimed at reducing the country’s dependence on imported medicines, saving foreign exchange and creating jobs in the pharmaceutical industry.

According to the Minister, Ghana currently imports between 70% and 75% of its medicine needs, costing the country about US$500 million every year.

The government intends to establish pharmaceutical and biomanufacturing hubs in the Eastern and Central Regions to support local production.

Construction of the facilities is expected to begin in 2027 through a state-owned special purpose vehicle (SPV), with qualified Ghanaian and international manufacturers expected to participate through leases and operating agreements.

The government also plans to amend public procurement laws to give locally manufactured medicines priority when public institutions use state funds to purchase drugs.

According to the Minister, Ghana follows in the footsteps of  India, Ethiopia, Nigeria and Tanzania whose policies support the purchase of locally manufactured medicines.

India for instance gives preference to locally produced medicines that meet minimum local-content requirements, while Ethiopia provides domestic manufacturers with preferential access to state supply contracts.

Nigeria directs government ministries and agencies to give preference to locally manufactured goods, while Tanzania offers local producers a price advantage in national medicine tenders.

The government says the programme could create approximately 20,000 direct and indirect jobs.

The 2027 Budget’s wider ambition is to make Ghana a pharmaceutical manufacturing and export centre for West Africa.