How would Ghana’s proposed procurement preference shift public medicine purchasing towards domestic manufacturers while preserving quality, supply and value for money?
A conditional preference for Ghanaian medicines
Finance Minister Dr Cassiel Ato Forson has announced plans to amend Ghana’s public procurement laws so state institutions prioritise medicines manufactured in Ghana when spending public funds. The proposed rule would not make local origin an automatic substitute for procurement requirements. Locally produced medicines would be preferred where they are available in sufficient quantities and meet approved quality standards. The policy is intended to redirect public purchasing towards domestic production while retaining checks on supply and performance. Forson said local preference would not compromise quality, timely delivery or value for money.
What the mechanism means for suppliers
The arrangement is a form of conditional domestic preference in public procurement. A Ghanaian manufacturer that can supply the required medicine in adequate quantities and meet the applicable standards would receive priority when public institutions buy with state funds. Suppliers would still need registration from Ghana’s Food and Drugs Authority and compliance with Good Manufacturing Practice standards. This means the preference is linked to eligibility and capability rather than simply to a company’s location. The policy would therefore affect how contracting authorities assess available offers, while preserving quality and delivery conditions.
A response to import dependence
The proposal forms part of a US$1 billion Pharmaceutical and Biomanufacturing Compact under the government’s New Economy agenda. Ghana currently imports between 70 and 75 per cent of its medicine requirements, at an annual cost of approximately US$500 million, according to Forson. The government wants public purchasing to help reverse that dependence and strengthen local pharmaceutical production. It also plans to support manufacturers seeking World Health Organisation prequalification, which would help Ghanaian products compete in international and regional markets rather than limiting the policy’s effect to domestic contracts.
Hubs and a production target
The government is targeting local production of between 60 and 80 per cent of Ghana’s essential medicine requirements by 2030. Pharmaceutical and biomanufacturing hubs are planned for the Eastern and Central Regions, with construction expected to begin in 2027 through a state-owned Special Purpose Vehicle. Qualified Ghanaian and international manufacturers are expected to participate through transparent lease and operating agreements. The initiative is also projected to generate approximately 20,000 direct and indirect jobs, conserve foreign exchange and support Ghana’s ambition to become a pharmaceutical manufacturing and export hub for West Africa.
IN NUMBERS
The proposed amendments would use the state’s purchasing power to build demand for local medicines, but access to public contracts would remain tied to registration, manufacturing standards, sufficient supply, timely delivery and value for money.
Reported from myjoyonline.com, 2026-11-12. The Tender Wire is published by Otnox.
