Members of the Pharmaceutical Manufacturers Association of Ghana (PMAG) have agreed to reduce the prices of selected locally produced medicines by between 5% and 15%, effective immediately.

According to a report by graphiconline.com, the decision was made during a general meeting held on June 12, 2025. It follows the recent strengthening of the Ghana cedi against the US dollar and other major currencies.

In a statement signed by PMAG President, Dr Samuel Tobbin, the association explained that the appreciation of the cedi has reduced the cost of importing raw and packaging materials, thereby lowering production costs for local pharmaceutical companies.

Since most inputs used in local medicine production are imported, PMAG members deemed it necessary to pass on the cost savings to consumers.

The move aims to ease the financial burden on the public and improve access to essential medicines.

PMAG has formally informed the Parliamentary Select Committee on Trade, Industry and Tourism about the decision.

The association noted that recent improvements in Ghana’s economy, such as declining inflation and a stronger currency, have positively impacted the pharmaceutical sector.

However, several challenges continue to drive up production costs. These include delayed payments from government health facilities, high interest rates (with the Ghana Reference Rate currently at 23.8%), and expensive port and logistics fees.

“These factors erode some of the gains from the cedi’s appreciation. Prompt payment of medicine suppliers by health facilities will help ensure that the benefits of the cedi’s appreciation are fully realised within the pharmaceutical industry,” the statement added.

Additionally, some companies are still selling older stock purchased when the cedi was weaker. As a result, the full benefits of the cedi’s appreciation have not yet translated into broader or more significant price cuts across the board.

DR/MA

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