As already established, the pharmaceutical landscape in Ghana is very competitive and demands stringent efforts and strategies to compete favourably i n the industry. We acknowledge that some Chinese companies and products are already competing in the pharmaceutical industry in Ghana (e.g., Sanbao Ghana Pharmaceuticals Limited).

To establish distribution channels in Ghana, the following suggestions are recommended:

i.     Partnership with key distributors: considering the competitive nature of the industry, Chinese companies should establish partnerships with key distributors in the industry. This will enable the company to leverage on the local distributors’ resources. This can be done by identifying Ghanaian Pharmaceutical companies of interest and enter into a dialogue which could lead to an official visit to the management of the selected company or companies, who will then be given the authorization to supply the products. Once the partnership is agreed, then the products can be registered with the Food and Drugs Authority of Ghana, after which the drugs can be supplied or distributed in the country. The terms of the partnership should be favourable to each party and share responsibilities to ensure a lasting relationship. In this case, the local party will use their established networks to aid in the supply of the new products introduced on the market to compete favourably.

ii.      Establish sales office in Ghana: the Chinese company can set up a marketing and sales office in Ghana to oversee the sales activities of the firm. This is capital intensive, as the firm would need to acquire an office and recruit Medical representatives and sales representatives who will be on the field to promote their products. In addition to this, the firm will have to identify agents or distributors who will import the products and distribute across the country to major stakeholders. The major task in this approach is that, the Chine se firm will have to bear the cost of promoting their products, establish links with the healthcare facilities, and ensure the visibility of their products on the market.

The distribution agents will then leverage on the work done by the sales team of the Chinese company to supply or distribute the products. Although, the local agent place orders through the Sales office of the Chinese company in Ghana, the Chinese company will be responsible for FDA registration issues and promotional activities. However, the agent shall be responsible for the cost of shipment and clearing at the port of entry. For example, Pfizer Inc . operates through this approach, which has worked over the years. Guilin Pharmaceuticals, a Chinese company in Shanghai adopted this approach in 2001 to distribute anti-malarial drugs (specifically Arsuamoon) to both distributors and Healthcare facilities.

iii.     Establish full office in Ghana: Compared to establishing sales office, this recommendation requires an active presence in Ghana. In this case, the company fully establishes a wholesale Pharmacy outlet in Ghana and shall be responsible for every activity. In this vein, the company will have to establish their own links with other wholesale pharmacies, retail pharmacies, hospitals and clinics nationwide, which requires high capital injection. The company shall have their own fleet of vehicles to be used in the supply and delivery of medicines to stakeholders or customers.

iv.    Partnership with  manufacturers: Chinese companies could  also  form partnerships with local manufacturers to build capacities and expand their product lines. Lack of adequate resources affects the performance of some of  these  local  manufacturers. Capital injection and  support  in  upgrading these premises to meet the current standards outlined by the WHO and the FDA presents some opportunities for foreign investors. Buying major stakes in these manufacturing companies are likely to help Chinese Pharmaceutical companies to introduce the production of some of their already establish ed brands in Ghana to compete on the market.

v.      Setting  up  a  manufacturing  plant:  Chinese  companies  can  also  set  up manufacturing plant in Ghana to directly supply wholesale pharmacies and other distributors. This is also capital intensive considering the cost involved in setting up the plan, register all products manufactured with the FDA, recruit and retain quality staff to ensure effective and efficient operations in the industry. Sanbao Ghana Pharmaceuticals Limited, which is a subsidiary of Hualong group in China, employed this approach and currently considered a leader in the supply and distribution of intravenous infusions in Ghana. Sanbao Pharmaceuticals Ltd has been operating in Ghana since 1999 and mainly engages in the manufacturing of intravenous infusions. They have been successful in the industry mainly due to their quality measures, focus and effective and efficient supply chain management. They supply almost every health facility (public or private) in all regions of the country. Chinese companies wishing to adopt this approach can learn from Sanbao’s model (not necessarily competing in the intravenous infusion segment) by ensuring quality standards are maintained, recruit well qualified personnel, well focussed, engage in an effective and efficient supply chain model (that includes excellent supplier-client relationship).