Ghana plans to invest $1 billion in pharmaceutical and biomanufacturing facilities as the government seeks to reduce its reliance on imported medicines, conserve foreign exchange and position local producers to supply West African markets.
Finance Minister Dr Cassiel Ato Forson said the government will establish pharmaceutical and biomanufacturing hubs in the Eastern and Central regions, with construction expected to begin in 2027 through a state-owned special-purpose vehicle.
The investment is part of a broader industrial strategy aimed at strengthening medicine security and expanding domestic manufacturing. Ghana currently imports between 70% and 75% of its medicine requirements, costing the country about $500 million annually, according to Forson.
The government aims to produce between 60% and 80% of Ghana’s essential medicine needs locally by 2030, the minister said during the 2027 budget presentation.
A central feature of the plan is a proposed change to public procurement laws that would require state institutions to use public funds to purchase medicines manufactured in Ghana whenever local products are available in sufficient quantities and meet approved quality standards.
The policy would make locally produced medicines the default choice for government purchases, giving domestic manufacturers preferential access to a significant source of demand.
Qualified Ghanaian and international pharmaceutical companies will be able to operate from the planned hubs through lease and operating agreements, with the government promising transparent arrangements for participation.
Forson said the preference for local producers would not come at the expense of quality, delivery or value for money. Suppliers will be required to hold registration from the Food and Drugs Authority and comply with Good Manufacturing Practice standards.
The government also plans to support manufacturers in obtaining World Health Organization prequalification, a certification that could help Ghanaian pharmaceutical products access procurement markets beyond the domestic economy.
The programme is projected to generate about 20,000 direct and indirect jobs, according to the minister.
The procurement proposal follows policies adopted in other African and Asian countries to support domestic pharmaceutical industries. India, Ethiopia, Nigeria and Tanzania have introduced different forms of local preference in government medicine purchasing.
For Ghana, the scale of the proposed investment and the shift in procurement rules could create a larger market for domestic producers. But the programme’s impact will depend on the pace of construction, the ability of manufacturers to meet quality and supply requirements, and the availability of financing.
