Ghana launches pharma policy to cut drug imports, double exports

Ghana has launched a new Pharmaceutical Manufacturing Policy aimed at increasing local production of medicines from 30 per cent to 60 per cent of national demand and doubling the value of pharmaceutical exports to markets within the Economic Community of West African States (ECOWAS).

The policy, launched by the Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, at the Ghana EXIM Bank Auditorium in Accra on Thursday, is expected to strengthen domestic pharmaceutical manufacturing, attract investment, create skilled jobs and reduce the country’s dependence on imported medicines.

The initiative forms part of the government’s broader industrialisation agenda, with pharmaceutical manufacturing identified as a strategic sector for economic growth, export development and national health security.

Speaking at the launch, Mrs Ofosu-Adjare said the policy would establish a coordinated framework for addressing longstanding challenges confronting local pharmaceutical manufacturers, including the high cost of imported raw materials, expensive financing, limited product diversification, and gaps in technology and specialised skills.

“Medicines are not ordinary goods. A country that cannot produce its own essential medicines leaves its health, economy and sovereignty vulnerable to decisions made elsewhere,” she said.

According to the Minister, local manufacturers currently supply approximately 30 per cent of Ghana’s medicine requirements, while imports account for the remaining 70 per cent.

The country also relies entirely on imports for its vaccine needs.

The policy is therefore intended to strengthen local capacity, improve the availability of essential medicines and retain a greater share of pharmaceutical spending within the domestic economy.

The immediate production target under the policy is to raise the share of medicines manufactured locally from 30 per cent to 60 per cent of national demand, while doubling pharmaceutical export values to ECOWAS markets.

These targets form part of a broader five-year pharmaceutical self-sufficiency plan announced by President John Dramani Mahama, which seeks to ensure that at least 70 per cent of medicines consumed in Ghana are produced domestically.

Mrs Ofosu-Adjare said the policy had received Cabinet approval in July 2026 and would translate the President’s commitment into practical measures to expand manufacturing capacity, improve competitiveness and position Ghana as a pharmaceutical production hub for West Africa.

She also linked the initiative to the government’s proposed US$10 billion New Economy Programme, which is expected to attract investment over four years into seven strategic sectors, including pharmaceuticals.

The programme is intended to support Ghana’s transition from economic stabilisation to sustained growth and employment, particularly for young people.

Pharmaceutical manufacturing is also expected to complement the government’s 24-Hour Economy and Accelerated Export Development Programme.

The Minister disclosed that the government had signed agreements with pharmaceutical manufacturers to supply essential medicines, including metformin, used in the treatment of diabetes, under the Free Primary Healthcare Programme.

She said government purchasing arrangements would be critical to providing local manufacturers with predictable demand, enabling them to plan production, expand capacity and invest in improved technology.

The policy places public procurement and the National Health Insurance Scheme at the centre of efforts to improve market access for quality medicines manufactured in Ghana.

The policy is structured around six priority areas designed to address the industry’s production, financing, regulatory and market-access constraints.

Government intends to support local manufacturers to attain World Health Organization (WHO) Good Manufacturing Practice certification and, over time, WHO prequalification.

Working with the Food and Drugs Authority (FDA), the Ministry will seek to ensure that medicines manufactured in Ghana meet recognised standards of quality, safety and efficacy.

The government plans to give fair preference to locally manufactured medicines that satisfy the required quality standards.

Mrs Ofosu-Adjare said local companies that meet regulatory requirements should be able to compete effectively for business in their home market.

Recognising the high capital requirements and long payback periods associated with pharmaceutical plants, the Ministry will work with Development Bank Ghana, Ghana EXIM Bank and the Ghana Investment Promotion Authority (GIPA) to facilitate patient, affordable capital and attract strategic investors and joint ventures.

The fourth pillar seeks to move the industry beyond finished formulations and packaging into higher-value production.

The policy encourages investment in active pharmaceutical ingredients, excipients and packaging materials, as well as opportunities in vaccines and biologics through collaboration with institutions such as the National Vaccine Institute.

This will involve stronger links between pharmaceutical manufacturers, universities and research institutions to develop the technicians, engineers, pharmacists, scientists and regulatory specialists required by the industry.

Through the African Continental Free Trade Area (AfCFTA), ECOWAS and trade diplomacy, government intends to help Ghanaian pharmaceutical companies access markets beyond the country’s borders.

Together, the six pillars are intended to build a more competitive domestic industry capable of meeting local demand while developing export-oriented production.

Access to affordable finance and the cost of imported production inputs remain among the principal obstacles to expanding pharmaceutical manufacturing in Ghana.

Pharmaceutical production requires substantial investment in factory infrastructure, specialised equipment, quality assurance systems, regulatory compliance and skilled personnel.

High borrowing costs can make such investments difficult, particularly for manufacturers seeking to introduce new products or upgrade existing facilities.

Dependence on imported active ingredients and other raw materials also exposes local companies to foreign-exchange pressures, shipping disruptions and fluctuations in international prices.

The policy seeks to address these constraints by mobilising long-term financing, encouraging technology partnerships and promoting investment in additional stages of the pharmaceutical value chain.

Expanding local production of ingredients and packaging materials could gradually reduce some import pressures, although the pace of progress will depend on investment, technical capacity and the commercial viability of domestic production.

The government’s focus on vaccines and biologics also signals an ambition to broaden Ghana’s manufacturing capabilities beyond conventional medicines.

Such expansion, however, will require specialised infrastructure, technical expertise, regulatory oversight and sustained financing.

To coordinate the policy’s execution, the Ministry has established a dedicated Pharmaceutical Manufacturing Development Unit.

The unit will oversee implementation, monitor progress against the policy’s targets and serve as a central point of contact for manufacturers, investors and other stakeholders.

An inter-ministerial implementation committee will bring together the Ministry of Trade, Agribusiness and Industry, the Ministry of Health, the Ministry of Finance, the FDA, the National Vaccine Institute, GIPA, the National Health Insurance Authority (NHIA) and industry representatives.

The committee is expected to oversee delivery and review progress, while implementation will be guided by annual work plans and measurable performance indicators.

Mrs Ofosu-Adjare said the Ministry would also lead Ghanaian pharmaceutical companies to regional and international trade events and investment forums to attract investors, establish partnerships and identify export opportunities.

The government’s ability to translate the policy into measurable industrial outcomes will depend on effective coordination among ministries, regulators, financial institutions, procurement agencies and manufacturers.

Predictable regulatory processes, timely procurement decisions and access to finance will be particularly important if companies are to expand capacity and meet the government’s production targets.

Ghana’s position as host of the AfCFTA Secretariat in Accra provides an opportunity for local pharmaceutical manufacturers to pursue markets across Africa.

The continent offers a substantial potential market, but expanding exports will require companies to meet the regulatory requirements of destination countries, maintain consistent product quality and compete on price, reliability and supply capacity.

The policy’s target of doubling pharmaceutical exports to ECOWAS markets is expected to encourage manufacturers to invest in production capacity and develop stronger regional distribution networks.

Successful implementation could help Ghana retain more value from pharmaceutical manufacturing while generating foreign exchange through exports.

It could also support the development of skilled employment in production, quality control, engineering, research, packaging, warehousing and logistics.

The Minister said pharmaceutical plants operating under the government’s 24-Hour Economy agenda could create employment opportunities for young people while increasing industrial productivity.

Mrs Ofosu-Adjare acknowledged the support of the European Union, the German Government, GIZ and the WHO in advancing Ghana’s pharmaceutical manufacturing agenda.

She also commended the Pharmaceutical Manufacturers Association of Ghana (PMAG), the Small-Scale Pharmaceutical Manufacturers Association of Ghana and officials from the Ministry and related institutions for their contributions to the development of the policy.

She called on manufacturers to invest in modern facilities and pursue internationally recognised quality standards, while urging investors and financial institutions to support the expansion of domestic production.

Regulators and procurement agencies were also encouraged to maintain strict quality requirements while ensuring that approval and purchasing processes remained efficient and predictable.

The Minister further appealed to consumers to have confidence in quality medicines produced locally, arguing that purchasing such products could support domestic businesses, employment and economic development.

Although the policy establishes clear production and export ambitions, its impact will ultimately depend on the government’s ability to address financing constraints, strengthen regulatory systems, secure reliable procurement arrangements and encourage private-sector investment.

The increase from 30 per cent to 60 per cent local supply, alongside the longer-term 70 per cent self-sufficiency target, will require sustained expansion in manufacturing capacity and the introduction of additional products.

Similarly, doubling exports will depend on Ghanaian companies’ ability to meet international quality standards, secure access to regional markets and compete with established pharmaceutical producers.

If effectively implemented, the policy could strengthen Ghana’s pharmaceutical industry, reduce exposure to external supply shocks, create skilled jobs and improve the country’s capacity to supply essential medicines.

Launching the policy, Mrs Ofosu-Adjare said Ghana should be better positioned to meet its needs during future global supply disruptions while supplying neighbouring countries.

The government’s immediate task is now to turn the policy’s commitments into bankable investments, expanded production lines, competitive products and measurable gains in domestic supply and exports.

Story by: Joshua Kwabena Smith and Priscilla Dodoo