Pharm. Harrison Kofi Abutiate full address at B.O.G Credit Reporting System Introduction
Pharm. Harrison Kofi Abutiate who is the current Chairman at Ghana National Chamber of Pharmacy (GNCoP) started his address by welcoming every participant that day including the organizers of the educational session, Bank of Ghana on behalf of the National Executive Council (NEC) and all members of Ghana National Chamber of Pharmacy (GNCoP)
“A major Government of Ghana policy is to make Ghana the pharmaceutical hub in Sub Sahara Africa. It is our expectation that all being well, within the next short to medium term, Ghana will be able to produce 60% -70% 0f medicines that are consumed locally and also for export. Other major policy areas are Textiles and automobile industry,” he added.
He continued by saying that to implement the pharmaceutical policy, the GNCoP has identified the need for the following: –
- Establish a pharma enclave at DAWA set up bio equivalence and laboratory testing centre
- Establish an Active Pharmaceutical Ingredients (APIs) plant.
- Establish an incubation Centre that will enhance technology transfer, skills development and upgrade, as well as human and product development for local pharma industry,
To do all above and more, Pharm. Harrison Abutiate urged that we need effective credit management system to ensure the pharma sector has funds to grow its business. According to Pharm. Abutiate during his speech, a recent survey revealed that more than 10% of cheques issued by companies, hospitals and institutions for payment of supplies to pharma companies are dishonored.
“As you may know, this is criminal! Pharma industry Wholesalers also have this unwritten law of giving 30 days credit to community pharmacies and other clients without any reference as to their ability to pay on due date. I must confess that public institutions also have failed most of us by unduly delaying payment to pharma suppliers and yet the government agencies are the first to come and hold us to ransom, to payment of all manner of taxes upfront.” he retorted.
Pharm Abutiate quoted, “Pursuant to the Credit Reporting Regulations, 2020 ( L .I .2394) the list of institutions required to participate in the Credit Reporting System (CRS) established under the Credit Reporting Act 2007 (Act 726) shall include corporate companies that provide credit facilities.”
“It is in respect of this that, the National Executive Council of the Ghana National Chamber of Pharmacy on Thursday 2nd June 2022, met with the Bank of Ghana Team from the Financial Stability Department at the Chamber secretariate to discuss the modalities leading to the designation of the Chamber as Data Providers to credit bureaus, in respect of credit facilities given by pharmaceutical companies to hospitals, clinics, companies and institutions. This will enable pharmaceutical companies the opportunity to obtain this service, from Chamber, on the credit behavior of clients prior to establishing credit relationships with them,” he continued.
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Pharm. Abuatiate quoted again, “In line with sections 24 and 26 of Act 726, and Regulations 22 of the Credit Reporting Regulations 2020 (L.I. 2394) the outcome of the engagement would be to :-
- Provide credit information on customers to all Credit bureaus licensed by Bank of Ghana within seventy -two (72) Hours after entering into a credit agreement facility.
- Obtain credit reports on prospective clients before concluding transactions with them.”
“This vital information will help us all in the pharma industry to deal with only serious and credible clients so that we can build solid financial capital to service our businesses. The GNCoP is determined to continue to support you all to be in business with such innovative activities. Next week, on the 18th May 2023, GNCoP will organize another workshop by Facility Investing for Employment (IFE) created by Kfw Development Bank on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ) as integral part of the Special Initiative “Decent Workforce a Just Transition,” he quickly added.
He concluded his opening address by explaining that IFE will provide co-financing grants for new investment projects with high job creation impact so all members should keep tuned.!!!
“Finally, The Bank of Ghana Team will give us more details on how their Credit Referencing System will operate. Again, Welcome and I thank you for your attention,” he concluded and took his seat.
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Source: Ghana Health Journal & SKB Journal