Ghana has measures to protect local manufacturing industries, including drugs on the EML (Essential Medicines List) and more traditional drugs. However, these protective measures have not always allowed for competition. A large West African drug distribution company with more advanced management systems (Gokal Laborex Ltd, affiliated with Eurapharma, which is part of a large French industrial conglomerate) has attempted to set up shop in Ghana, but this company has met resistance from local players. Local manufacturers are aware that their fragmented business model is not competitive in a global market.

Nevertheless, 70% of drugs, including generic, generic branded, and branded drugs, are imported. A duty is charged on imported drugs; little or no duty is charged on drugs that come into the country through external financing or that may classify as a public good[1].

The imported drugs are mainly from India and China. It is estimated that 30% of the sub-region market is supplied by Nigerian manufacturers although Ghana-based manufacturers also export significant quantities to the sub-region[2]. China is promoting an investment of US$15m by China-owned Sanbao Ghana Pharmaceuticals to expand production in Ghana. The company can now produce 15 million units of intravenous infusions annually, increasing its workforce from 50 to 100[3].

[1] Ibid., p.78.

[2] Raja Mohan Reddy. G, Venkatesh M. P., Pramod Kumar T.M., Regulatory Perspectives of Pharmaceutical Products in Ghana, p.9.

[3]http://www.manufacturingchemist.com/news/article_page/China_promotes_pharma_manufacturing_investment_in_Ghana/109809