Pharmaceuticals
Generally, the pharmaceutical industry is comprised of companies engaged in researching, developing, manufacturing and distributing drugs for human or veterinary use. However, LFF Group of Company supply chain support services is to explore opportunity in the sector through imports and exports of health products through international partners
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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.
This is projected to reach GHS2.8 billion ($449mn) by 2022. Prescription medicines dominate the market representing 74% by market value, while over-the-counter (OTC) medicines occupy a considerably smaller share at 26%.
The prescription market share is split between patented drugs and generic drugs. However, we expect the market to become increasingly penetrated by generic medicines over the long-term, somewhat eroding patented medicines' share. Pharmaceutical sales accounted for 0.60% of GDP and 18.2% of total healthcare expenditure in 2021. 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.
The Pharmaceutical Manufacturers Association of Ghana has 35 registered members, with domestic companies accounting for 30% of the country's pharmaceutical market.
Ghana's commitment to increase access to essential health services and universal health coverage are ongoing priorities, which are supported by government investments in infrastructure and an aim to increase local production of generic pharmaceuticals.
The government plans to achieve this through import bans on various essential medicines, thereby reducing their import bill and encouraging advancements in domestic production, which will lead to greater export capabilities. Pharmaceutical spending will increase over the course of our forecast period.
Ghana continues to be considered among the most attractive markets on a regional basis for international investors.