Hardships, depreciation of cedi are collapsing pharmaceutical industry - Chamber of Pharmacy warns

The Chamber of Pharmacy has warned that the pharmaceutical industry will soon collapse if the hardships in the country are not addressed.

Addressing a press conference in Accra, chairman of the Ghana National Chamber of Pharmacy, Harrison K. Abutiate lamented over the persisting hardships in the country, insisting that the constant depreciation of the Ghanaian cedi is making matters worse for industry players.

“The Pharmaceutical Industry is credit-driven. Public Sector pays on the average 6-12 months, because of delayed payments of the National Health Insurance Scheme(NHIS). Majority of private facilities make payments for all supplies within 3-4 months. In the current circumstances of daily devaluation of the cedi, it’s imperative to state that pharmaceutical supplies on credit under this time has led to erosion of operational capital of pharmaceutical importers and manufacturers,” he told the media.

According to Mr. Harrison K. Abutiate, many pharmaceutical companies risk shutting down or laying off staff very soon if things do not improve.

In this regard, the Chamber of Pharmacy Ghana is calling on the Ministry of Finance to do its part to keep the pharmaceutical industry alive.

“On the industry front interest in continuous investment in official and pharmaceutical business is waning. Very soon a sizeable number of industry players may be forced to fold up or lay off staff. This becomes a dangerous recipe for criminals to engage in nefarious activities and flood the market with fake and sub-standard products just to compromise quality and efficacy of medicines, thereby putting the health of all Ghanaians at risk.

“The National Chamber of Pharmacy, the Pharmaceutical Manufacturers Association of Ghana, and the Pharmaceutical Importers and Wholesalers Association of Ghana, therefore call for an immediate action to save the industry.

“The Ministry of Finance and Economic Planning should release funds to immediately to pay for the long-standing debt of over 9 months and to push to clear all overdue debts,” Mr. Harrison K. Abutiate noted.