Local medicine prices reduced by up to 15%

The Pharmaceutical Manufacturers Association of Ghana (PMAG) has announced an immediate reduction in the prices of selected locally manufactured medicines, ranging from five to 15 percent.

This decision, according to PMAG, reflects the recent appreciation of the Ghana cedi against major international currencies.

The move was unanimously agreed upon at PMAG’s recent general meeting.

A statement signed by the Association’s President, Dr. Samuel Tobbin, explained that the strengthening of the cedi has significantly lowered the cost of importing raw materials and packaging supplies major components in pharmaceutical manufacturing.

“The result of the appreciation of the cedi is a reduced cost of importing raw materials and packaging materials, and finally, reduced production costs for pharmaceutical manufacturers,” the statement said.

Given that most raw materials used in medicine production are imported, PMAG stated that it was appropriate for consumers to benefit from the gains in the exchange rate.

“The decision of PMAG to pass this benefit to our consumers and patients to alleviate their financial burden and promote access to essential locally manufactured medicines became imperative,” it added.

The resolution has since been communicated to the Parliamentary Select Committee on Trade, Industry, and Tourism.

PMAG noted that Ghana’s macroeconomic environment has recently shown signs of stability, creating room for the price cuts.

Among the indicators cited were a reduction in inflation from 22.4 percent in March to 16 percent in June, and a notable appreciation of the cedi from GHS16 to GHS10.26 per US dollar within the same period.

These trends, PMAG observed, have brought temporary relief to import-dependent industries, including pharmaceuticals, and should be reflected in pricing to support public access to essential medications.

Despite the positive economic outlook, PMAG cautioned that certain structural and operational challenges continue to push production costs higher.

Chief among these is the delayed reimbursement process for pharmaceutical suppliers by government health facilities. Many local manufacturers sell to public health institutions, which only pay after receiving funds from the National Health Insurance Authority (NHIA), often after long delays.

“This erodes some of the gains from the cedi appreciation,” the statement noted. PMAG called for prompt payments to medicine suppliers to ensure they can maintain lower prices and stable production.

The association also cited high interest rates as a key concern. With the Ghana Reference Rate standing at 23.8 percent, manufacturers face significant financing costs that affect their ability to invest in operations and expansion. Ideally, PMAG argues, single-digit interest rates would better support the sector’s role in achieving universal health coverage.

Furthermore, logistical costs at ports and previously purchased inventories acquired when the dollar exchange rate was higher continue to affect current production expenses.

Despite these challenges, PMAG said it remains committed to working with government agencies and industry stakeholders to ensure that the price reductions are fair, sustainable, and beneficial to consumers.

“As Ghana has a free pricing policy, which is not controlled, PMAG will continue to work with members and all stakeholders to secure affordable, safe, and efficacious medicines for everyone in Ghana,” the statement added.