Have any questions? Feel free to contact us:
+233 (0) 30 393 8157

Pharm. Kofi Addo-Agyekum speech on Overview of the Operations of the Pharmaceutical Industry and GNCoP Members

Pharm. Kofi Addo-Agyekum who is a member of the National Executive Council (NEC) of Ghana National Chamber of Pharmacy on 11th of May 2023 gave a speech on the overview of the operations of the Pharmaceutical Industry focusing on the credit transactions of GNCoP’s members. He started his speech by recalling that when he graduated from the University around 1995 there was less competition in the pharmaceutical market, few industry players etc. so checks on operations in the pharmaceutical industry was easy hence issues of debt like what we are hearing now was not a problem.

Kofi Addo-Agyekum speech on Overview of the Operations of the Pharmaceutical Industry and GNCoP Members

The Chief Executive Officer of Kofikrom Pharmacy Limited continued his speech by stating that the pharmaceutical sector in Ghana mainly comprises of producers of drugs, wholesalers, distributors, retailers and consumers. Ghana’s pharmaceutical market is among the largest in the West African region yet remains small on a global scale. Ghana’s pharmaceutical market was valued at GHS2.6 billion ($443 million) in 2021, which is fairly modest in global terms and even by regional standards.

Pharm. Addo-Agyekum indicated that with these analysis and references made, he believes that things have changed now, and these changes are due to some few key points he touched on:

  • Demand Dynamics: “The demand for pharmaceutical products in Ghana has been influenced by economic factors such as incomes and increasing populations and specific government policies. The four (4) main factors that drive the purchase of a particular drug in relation to direct consumers are: Affordability: people usually want to pay for drugs that are not expensive. Effectiveness: consumers would always want to buy a drug that really works. How well known the brand is: majority of people are scared to use a drug they haven’t heard so much about and Doctor’s prescription.”
  •  Trade Dynamics: “As with most emerging African countries, Ghana has a negative trade balance in relation to pharmaceutical trade. According to the Ghanaian health service, only 30% of the national requirements of pharmaceutical products are produced in Ghana, while the remaining 70% are imported. However, the Ghanaian government has emphasized the need to manufacture more locally produced medicines over the next decade, an ambition it shares with many African governments.”
  • The high cost of borrowing: Lack of access to investment or developmental capital, Inadequate human resource availability, Importation of cheaper sub-standard drugs, Counterfeiting etc.

Kofi Addo-Agyekum speech on Overview of the Operations of the Pharmaceutical Industry and GNCoP Members

Pharm. Add0-Agyekum added that it is these factors that has led to operational challenges, stiff industry of not paying debt by suppliers and high promotional cost in the pharmaceutical industry. He further stated that when he graduated from the University there was nothing like Cash and Carry, procurement system, frameworks, hospitals interested in essential medicines etc. but now all these have become part of the pharmaceutical industry and more

“As of 2021, healthcare expenditure in Ghana was valued at GHS14.5bn (USD2.4bn), with public healthcare expenditure accounting for just over 45% of the overall market share. We expect this to increase as a proportion of total healthcare spending as demand for healthcare increases and gradual reforms to Ghana’s National Health Insurance Scheme (NHIS) are implemented.
Healthcare spending represents 3.5% of GDP with per capita spending at USD81.2. Private healthcare expenditure was valued at GHS8.4bn (USD1.4bn) in 2021, corresponding to 55% of the total market share. Within this market, the government of Ghana is a major player, both as a regulator of the market and as a buyer involved directly in the wholesale and supply of drugs and healthcare services. Concerns about the provision of relatively cheap and effective drugs to the mass population have
led to several government-led and/or private sector-led initiatives in the pharmaceutical sector of Ghana yet the Government who is the major player is failing the pharmaceutical companies with delay payments. How can these pharmaceutical companies who are not paid on time continue with their businesses?” he questioned

“As we are being introduced to this Credit Reporting System, I will urge Bank of Ghana to review this system to include government led institutions and not only individuals and private led institutions and I think that will help the pharmaceutical companies keep track of all their debtors or debts,” he concluded.

To Get Full Images of the meeting, CLICK HERE