Ghana will become the hub of pharmaceutical production in Sub Saharan Africa (SSA) on the back of COVID-19 vaccines.
According to Fitch Solutions, the country continues to work towards its aim of establishing itself as a pharmaceutical hub on the continent.
The creation of a pharmaceutical industrial park for pharmaceutical companies to establish large scale operations is therefore a testament
“Global vaccine demand has placed countries with local manufacturing capabilities in a stronger position to guarantee access. In this respect Ghana’s local industry is limited, however, on April 19, 2021, the Pharmaceutical Association of Ghana (PMAG) appealed to the government to strengthen local vaccine production,” it said.
The move the research arm of ratings agency, Fitch, said would help guarantee a reliable source of vaccines for the country and the SSA region, adding, the country has also started feasibility studies to manufacture its own vaccine for COVID-19 and also to reduce Ghana’s and Africa’s reliance on foreign vaccines in the long-term.
The Ghana National Chamber of Pharmacy last September signed a Memorandum of Understanding with a construction firm for the creation of a pharmaceutical industrial park.
Furthermore, President Akufo-Addo in November tasked the Pharmaceutical Society of Ghana to position the country to become the centre of generic drug production across Sub Sahara Africa.
Since Ghana is one of the only two countries in Sub Saharan Africa which produces active pharmaceutical ingredients, Fitch Solutions, believes these initiatives will significantly help to bolster pharmaceutical growth.
To encourage pharmaceutical market growth, the Ghana National Chamber of Pharmacy with funding from foreign and development organisation, have created a support package of $626,000. The fund will be used to provide grants to pharmaceutical manufacturers, distributors and consulting firms within the pharmaceutical sector.
The objective of the grant is to provide support to companies to address vulnerabilities in the pharmaceutical supply chain, among others.
The report said increased localised production will help decrease the pharmaceutical trade deficit in the long-term
Meanwhile, pharmaceutical sales are expected to rise to GH¢2.86 billion this year.
It is expected to reach GH¢3.96 billion in 2025.
“We maintain a positive forecast for Ghana’s pharmaceutical market. Increased local production will help to drive Ghana’s domestic pharmaceutical market and we expect growth will mainly be driven by local generics production, “the report said.
“Pharmaceutical sales in Ghana reached GH¢2.69 billion (US$462mn) in 2020, and we forecast figures to rise to GH¢2.86 billion (US$468mn) in 2021. Looking further forward to 2025, we expect sales to achieve a compound annual growth rate of 8.0 per cent in local currency (3.3 per cent in dollars) to reach GH¢3.96bn (US$544mn)”.
By the end of its 10-year forecast range, it expects sales to reach GH¢6.55bn (US¢896mn) by 2030.