Cassiel Ato Forson pledges $1bn for pharmaceutical manufacturing from 2027

The Ghana government plans to invest US$1 billion in the pharmaceutical and biomanufacturing industry starting in 2027 to transform the nation into a regional hub for medicine production. Finance Minister Dr. Cassiel Ato Forson announced that the initiative aims to reduce the country’s heavy reliance on imported drugs, which currently account for 70% to 75% of national requirements. By bolstering domestic capacity, the government intends to establish Ghana as a primary pharmaceutical export hub for the West African sub-region while enhancing national health security.

The investment will be channeled through a state-owned Special Purpose Vehicle (SPV), with construction of dedicated manufacturing hubs in the Eastern and Central Regions scheduled to begin in 2027. This strategic shift is designed to meet 60% to 80% of Ghana’s essential medicine needs locally by 2030. Economically, the expansion is expected to generate approximately 20,000 direct and indirect jobs and significantly reduce the annual US$500 million expenditure currently spent on pharmaceutical imports. To ensure the sustainability of these local firms, the government also plans to amend public procurement laws to prioritize locally manufactured medicines that meet international Good Manufacturing Practices.

While the government prepares this massive capital injection, industry experts have highlighted the structural challenges that currently hinder local growth. Dr. Sodzi Sodzi-Tettey, CEO of the National Vaccine Institute, noted that unpredictable long-term markets have historically made it difficult for manufacturers to attract the necessary financing for expansion. He emphasized that for the industry to thrive, manufacturers need advanced market commitments and access to broader procurement platforms like the African Pooled Procurement Mechanism (APPM). The APPM is designed to provide African manufacturers with a more predictable and larger market through collective procurement, addressing the revenue uncertainty that often deters private lenders.