Ghana’s Finance Minister Dr Cassiel Ato Forson
Ghana is set to invest US$1 billion in pharmaceutical manufacturing and biotechnology to reduce reliance on imported drugs, strengthen domestic production and position the country as a major medicine supplier in West Africa.
The initiative seeks to enable local industries to meet between 60 and 80 per cent of national demand for essential medicines by 2030.
Ghana’s Finance Minister Dr Cassiel Ato Forson disclosed the policy during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.
He explained that the investment would improve access to essential drugs, preserve foreign currency reserves, expand industrial capacity and generate employment opportunities.
Currently, Ghana sources approximately 70 to 75 per cent of its pharmaceutical requirements from overseas markets, spending an estimated US$500 million annually.
Ghana Unveils $1bn Plan To Boost Local Medicine Production By 2030
To address the situation, the government intends to develop specialised pharmaceutical production centres in the Eastern and Central Regions.
Work on the proposed facilities is scheduled to commence in 2027 under a state-owned Special Purpose Vehicle (SPV), with both domestic and foreign companies invited to participate through leasing arrangements and operational partnerships.
Authorities are also considering changes to public procurement regulations to ensure that medicines manufactured within Ghana receive preferential treatment in government-funded purchases.
The proposed reforms draw inspiration from countries including India, Ethiopia, Nigeria and Tanzania, which have introduced measures to encourage the use of locally produced pharmaceuticals.
While India and Ethiopia grant domestic manufacturers advantages in government supply arrangements, Nigeria promotes indigenous products across public institutions.
Tanzania, meanwhile, provides local pharmaceutical companies with preferential pricing in national drug procurement exercises.
The initiative is projected to generate about 20,000 employment opportunities, both directly and indirectly.
Beyond meeting domestic healthcare requirements, the programme is expected to establish Ghana as a regional pharmaceutical production and distribution hub, serving markets across West Africa.
By: Magdalene Agyeiwaa Sarpong