Revolutionizing healthcare: how a 24-hour economy can transform the pharmaceutical sector
Picture this: you’re at a local pharmacy, and despite your urgent need for medication, the shelves are filled with medicinal commodities you can’t afford. This scenario is all too familiar for many Ghanaians, particularly in rural areas, where access to affordable essential drugs is limited. The reason? A staggering reliance on imported pharmaceuticals which are not any cheaper.
Over 70 per cent of the medicines consumed in Ghana come from abroad, leaving our healthcare system vulnerable to global supply chain disruptions and price fluctuations. But what if we could change this narrative?
By embracing a 24-hour economy policy in our pharmaceutical sector, we could boost local manufacturing and ensure that life-saving medications are available whenever they’re needed—day or night.
The pharmaceutical sector in Ghana is a critical component of the economy, with its market valued at over US$433 million. Currently, domestic production represents roughly 30 per cent of this market, supported by an estimated 32 to 38 licensed manufacturing firms. These companies employ upwards of 5,000 Ghanaians and predominantly concentrate on producing Over-the-Counter (OTC) medicines.
However, the sector’s excessive reliance on imports presents considerable challenges. The urgent need for increased local production is primarily fueled by the nation’s health challenges, particularly in combating diseases such as malaria, HIV/AIDS, and tuberculosis, which necessitate a steady supply of essential medications like analgesics, antimalarials, and multivitamins.
The Ghanaian context
Despite the pharmaceutical industry’s steady expansion over the last ten years, contributing approximately 0.5 per cent to the national GDP and accounting for up to 13 per cent of healthcare expenditures, it faces numerous hurdles. Key issues include high production costs, inadequate manufacturing capacity, and significant dependency on imported active pharmaceutical ingredients (APIs) and excipients.
Recent economic challenges, such as the depreciation of the cedi, have further complicated matters for local manufacturers, emphasizing the urgent need for strategic reforms. While the Ghanaian Food and Drugs Authority has garnered recognition for its robust regulatory framework, there is a pressing need to enhance local production capabilities to effectively address the growing pharmaceutical needs of the country.
In this context, a 24-hour economy policy could pave the way for a more resilient pharmaceutical sector—one that not only addresses the pressing needs of Ghanaians but also fosters economic growth and reduces our reliance on foreign imports.
Ghana’s pharmaceutical sector is poised for significant expansion, with plans to increase local production from the current 30 per cent to between 60 per cent and 80 per cent of domestic demand. To achieve this goal, a US$321 million pharmaceutical park is under construction, aimed at decreasing the nation’s dependence on imports, which reached US$263 million in 2019, in stark contrast to exports of just US$3.8 million.
As the sole sub-Saharan African nation capable of producing active pharmaceutical ingredients, Ghana enjoys a competitive advantage in the regional generic drug market. Pharmaceutical sales were recorded at GHS 2.7 billion (approximately US$461.7 million) in 2020 and are expected to grow to GHS 4 billion (around US$684 million) by 2025.
The Ghana Food and Drugs Authority (FDA), which oversees the sector, received recognition from the World Health Organization (WHO) in 2020 for its regulatory accomplishments.
According to the United Nations Conference on Trade and Development (UNCTAD), Ghana’s exports of medicinal and pharmaceutical products amounted to approximately US$1,273.11 million in December 2022, reflecting an increase from US$933.14 million in December 2021.
This data is updated annually, with an average export value of around US$268.36 million from December 1995 to 2022, based on 28 observations. The highest export value was recorded in 2022, while the lowest was US$24.53 million in 1998. This information is categorized under the World Trend Plus’s Association for the Pharmaceutical and Biotechnology Sector and is actively maintained in the CEIC database.
Enhancing global health and economic resilience through a 24-hour economy in pharmaceutical sector
A 24-hour pharmaceutical economy won’t just benefit healthcare facilities; it will boost employment opportunities and create a ripple effect across local industries. More jobs, better services, and quicker access to life-saving drugs—this is the future we can build.
Achieving universal health coverage
Access to affordable, high-quality medicines is a cornerstone of universal health coverage. In Ghana, significant disparities exist, especially in resource-limited areas where the cost of life-saving pharmaceuticals can be a barrier to access.
Through strengthening the local pharmaceutical sector through a robust 24-hour economy policy, the availability of cost-effective and high-quality locally produced medicines will increase. This enhancement will help close the healthcare gap exacerbated by economic challenges, leading to better national health outcomes and ensuring equitable access to essential medicines for all citizens.
Boosting pandemic preparedness
The COVID-19 pandemic has highlighted vulnerabilities within health systems globally, including those in Ghana. To fortify the country’s preparedness for future health crises, it is vital to enhance the capabilities of local pharmaceutical industries.
Strategic partnerships that adhere to best practices, such as Good Manufacturing Practice (GMP) standards, can be established. By creating bioequivalence facilities and quality-control laboratories, Ghana can significantly improve its response to health emergencies. Additionally, building the technical capacity for the production of biologics and vaccines will empower the nation to effectively address global health threats.
Reducing healthcare costs
Implementing a 24-hour economy policy will not only strengthen local pharmaceutical production but also facilitate the procurement of affordable, high-quality medicines. This approach can lead to significant reductions in healthcare expenditure, which accounted for up to 13 per cent of total costs in 2018.
Increasing the availability of locally manufactured pharmaceuticals, can help Ghana lower healthcare expenses and alleviate the financial strain on its healthcare system, ultimately making essential medicines more accessible to all citizens.
Driving economic growth through increased production
Establishing a 24-hour economy can significantly elevate production levels by creating a supportive environment for local pharmaceutical companies to operate continuously. This policy framework encourages firms to boost production volumes, offer competitive pricing, and achieve profitability in a stable market. As production flourishes, companies will see increased revenues, translating into higher tax contributions for the government and bolstering the national economy.
Creating employment opportunities
The 24-hour economy will not only enhance production capabilities but also generate a multitude of employment opportunities. As pharmaceutical manufacturers expand their operations, they will require a larger workforce, thereby addressing unemployment challenges in the country. The influx of job opportunities, particularly for young individuals, will lead to increased income tax revenues, further contributing to government revenue and overall economic growth.
Strengthening Ghana’s competitive position in the region
The African Continental Free Trade Area (AfCFTA) offers a remarkable opportunity for Ghanaian manufacturers to thrive. With 44 African nations ratifying the agreement, Ghana’s pharmaceutical sector is well-positioned to capitalize on this continental market.
By fully implementing a 24-hour economy policy, Ghana can leverage broader market access and reduced trade barriers, enhancing its competitive edge within the regional pharmaceutical landscape.
Considerations and obstacles to tackle
To bring the vision of a 24-hour economy in Ghana’s pharmaceutical sector to life, engaging policymakers, businesses, and the community is essential. This initiative represents more than just a logistical upgrade; it is a commitment to improving health outcomes and ensuring equitable access to lifesaving medicines. Collaborative efforts can create an environment where pharmaceutical companies thrive, ultimately benefiting all Ghanaians.
Addressing production costs
Optimizing production within this new economic framework requires implementing several key strategies. First, establishing policy frameworks that provide favourable energy tariffs for pharmaceutical companies is crucial.
Such incentives would encourage continuous production cycles, allowing for operations in three eight-hour shifts. Enhancing efficiency in this way would significantly reduce overall production costs, making local manufacturers more competitive.
Introducing tax incentives and exemptions for local manufacturers on active pharmaceutical ingredients (APIs) and excipients adopting a 24-hour production schedule is vital. This approach would lower production expenses and bolster competitiveness against imported products.
Reinforcing existing policies that exempt import taxes on medical consumables and raw materials would further improve the attractiveness and profitability of domestic pharmaceutical production.
Implementing tax policies that disincentivize the importation of pharmaceutical products readily available in the local market is also essential. Such measures would foster a competitive landscape for local manufacturers, driving innovation and ensuring affordable medicine prices while promoting healthy competition within the domestic industry.
Ensuring a market for locally manufactured pharmaceutical products
Guaranteeing the success of locally manufactured pharmaceutical products relies on enforcing procurement policies. These policies should require, government medical stores, and other public institutions to allocate a fixed portion of their purchases to locally manufactured pharmaceutical products.
This strategy would secure a steady market for domestic companies engaged in the 24-hour economy initiative, boosting demand for locally produced medicines and promoting sustainability in the sector.
Enhancing local technical capacity and expertise
Improving local technical capacity is essential for the success of the 24-hour economy. A government-led action plan should be developed to assist local pharmaceutical firms in enhancing their Good Manufacturing Practice (GMP) standards. This support must aim to help these companies achieve WHO prequalification, leveraging Ghana’s existing WHO-prequalified Drug Physicochemical Laboratory.
Accelerating government-led initiatives to improve the availability of technical expertise necessary for establishing and operating GMP-compliant manufacturing facilities is also vital. This includes strengthening bioequivalence testing capabilities and enhancing quality-control laboratories.
Collaboration with multinational corporations and advanced research institutions holds significant importance
These partnerships will empower Ghana’s pharmaceutical industry to build capacity for producing complex products, including biologics, vaccines, and treatments for critical and chronic health conditions, ultimately fostering innovation and local expertise.
Enhancing security for pharmaceutical companies, health facilities, and staff
Despite some pharmacies in urban areas attempting to operate 24-hour services, many have reverted to traditional 8-10 hour shifts due to low night-time revenue. Security concerns significantly deter customers from utilizing these services, as home deliveries typically cease by 7-8 PM.
A comprehensive 24-hour economy policy that emphasizes security and creates a safe environment for facilities and clients is necessary. Such measures could enhance nighttime operations, increasing demand not only for pharmacies but for the entire retail sector.
Setting development targets to decrease import dependence
Establishing a clear development agenda is crucial for reducing Ghana’s reliance on imported pharmaceutical products. A target to decrease this reliance from 70 per cent to 45-50 per cent over the next 10-15 years should be set. Achieving this goal will require promoting local production, enhancing manufacturing capabilities, and fostering innovation within the domestic pharmaceutical sector. Prioritizing these recommendations and considerations can transform Ghana’s pharmaceutical landscape, ensuring a healthier future for all citizens.
Call to action: embracing a 24-hour economy for a healthier Ghana
The time to act is now! As we stand at the crossroads of opportunity and challenge in Ghana’s pharmaceutical sector, it is important that policymakers, businesses, and the public unite to champion the implementation of a 24-hour economy policy. This initiative is not merely a strategy for economic growth; it is a vital step towards ensuring that all Ghanaians have continuous access to essential healthcare services, day and night.
We urge all to prioritize this policy framework, collaborating closely with private & public sector stakeholders to create a supportive environment for local pharmaceutical manufacturers. Investing in infrastructure, providing tax incentives, and enhancing security measures for round-the-clock operations, can cultivate a robust industry capable of meeting our healthcare needs.
Businesses, too, should take the initiative to adapt to this transformative model. Embracing the 24-hour economy, can enhance production capabilities, drive down costs, and ultimately deliver affordable, high-quality medicines to the public. To the public, your voices matter! Advocate for policies that prioritize health equity and access. Engage with local representatives to express your support for a 24-hour economy that promotes the well-being of every citizen.
Together, let’s forge a path towards a resilient and equitable healthcare system. A 24-hour economy in the pharmaceutical sector, will not only elevate Ghana’s position in the global market but also ensure that no Ghanaian is left without access to the medicines and healthcare they need. The time for action is now—let us work collectively to make this vision a reality for a healthier, more prosperous Ghana.
>>>Mark Anum Nortey (MBA, MPH, BPharm) is a pharmacist, researcher, and Global health expert with nearly 15 years of experience across Sub-Saharan Africa in public health, healthcare policy, pharmaceutical innovation, and healthcare systems management. He brings a wealth of expertise in addressing complex health challenges, driving policy development, and fostering pharmaceutical advancements. Academically, he holds a Pharmacy degree and advanced qualifications, including an MBA in Total Quality Management and an MPH, both earned from prestigious universities in Ghana. Markanum07@gmail.com
>>>Obed Annan Nortey (Mphil Finance, Mphil Dev Fin, B.Ed Acc) is a seasoned professional specializing in Private Sector Development, Inclusive Finance, Education, and Research. He is highly result-oriented, with a genuine passion for driving business development for MSMEs, improving enterprise risk management, and fostering financial growth. His academic journey includes degrees in Accounting, Finance (MPhil), and Development Finance (MPhil) from prestigious institutions in Ghana, including the University of Education, Winneba – Kumasi (UEW-K), University of Ghana Business School, and the Institute of Development and Technology Management (IDTM). He can be reached via annannortey15@gmail.com
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