Impact of high cost of essential medicines on Ghana’s aged population

It is essential for individuals in West Africa to have access to reasonably priced medical care in order to protect their health and well-being. The distribution of healthcare services across any given population or country is not possible without pharmaceuticals...According to the Ghana National Drug Policy 2nd edition published in July 2004, "The absence of drugs or inadequate supply of drugs has always led to a loss of confidence in the healthcare system." In Africa, profit margins on high-quality pharmaceuticals can range anywhere from 80 to 150 percent. (WHO 2008). Because of the high expense of medications, patients are often forced to settle for alternatives of poorer quality or are unable to acquire enough medication to cover their whole course of therapy. The market for pharmaceutical drugs is severely fragmented and poorly regulated in a number of the African countries' markets. These medications typically have consumer pricing that are more than one hundred percent more than the free on-board price charged by the pharmaceutical manufacturer. Because there is relatively little restriction on pricing in the marketplaces of Sub-Saharan Africa, there is a large amount of variation in the prices charged by different service providers.

For third party payers (TPPs), pharmaceuticals can account for up to 40% of their overall claim expenses, which affects the ability of TPPs to fund certain medical services for all patients. Consequently, this will have a negative impact on the patients' overall quality of health care. Additionally, in uncontrolled markets such as Ghana, a typical free market with no legislative obstacles to the pharmaceutical sector, there can be considerable price fluctuation across retail pharmacy locations. In addition to this, sixty percent of Ghanaians pay for their own healthcare out of their own personal funds. The numbers is not much different if not worse in most nations in Africa where health care financing is a concern. This situation is considerably worse for people with chronic ailments , since many are pensioners and need a continual supply of drugs to control their conditions. However, the consistent rise in the price of pharmaceuticals offers significant challenges that make it more difficult for everyone to afford the necessary medical care. To effectively address this problem, comprehensive and well-coordinated efforts from all relevant actors in the healthcare system would be required. In the following paragraphs, we will examine a few of the potential approaches that might be taken to address the issue of the consistently rising prices of medicines in Ghana.


First, there is the need to boost Generic Medication Availability: Promoting the availability and utilization of generic medications can drastically cut medication prices. Governments can enact policies to support generic competition through local production, streamline regulatory processes, and encourage the marketing of high-quality, affordable generic pharmaceuticals. Educational initiatives can help promote awareness among healthcare professionals and patients regarding the safety and efficacy of generic drugs.

Strengthen Healthcare Financing: Acces to money for medicine acquisition and distribution must be prioritised. The engagement of financial intutitions like banks with pharmaceutical providers is one such approach than can help limit the cost of drug procurement and distribution. Improving healthcare financing mechanisms, such as social insurance programs and community-based health schemes, can help vulnerable individuals bear less of the burden of the financial cost of their medical care.

In the pharmaceutical industry, there is an immediate need to improve management of supply chains, optimize inventories, avoid stockouts, and cut down on waste. The implementation of technology in real-Time Tracking and traceability is vital to transparency in the supply chain.:


Implementing technology-enabled solutions for real-time tracking and traceability of pharmaceutical items throughout the supply chain can boost visibility and improve inventory management. This helps identify bottlenecks, check supply levels, and reduce losses due to theft or expiration. Accurate demand planning and forecasting are vital for maintaining optimal inventory levels. The managers of supply chains are able to make more accurate projections of future demand if they examine past data, trends in the market, and any other relevant aspects. This helps to reduce stockouts as well as overstocking, which eventually results in a reduction in the costs connected with inventory management.

The problem of the excessively high cost of drugs in West Africa is a significant one that calls for concerted action on the part of all participants in the healthcare system. Governments can enact policies to enable generic competition, streamline regulatory processes, and stimulate the manufacturing of high-quality, affordable generic pharmaceuticals. Educational initiatives can help promote awareness among healthcare professionals and patients regarding the safety and efficacy of generic drugs. One alternative solution would be to improve healthcare financing by broadening patients' access to financial resources for the purchase of medicine.

Finally, creating strong and collaborative relationships with suppliers, distributors, and other stakeholders like financial institutions in the supply chain is vital. The implementation of technology can increase communication and information exchange to enable greater coordination and alignment of supply and demand. Because of this teamwork, inventory management may be improved, lead times may be shortened, and costs may be decreased. Addressing the continual growth in drug prices in West Africa involves a multi-faceted approach incorporating government policies, regional coordination, regulatory enforcement, and stakeholder involvement. By promoting generic competition, strengthening regulatory frameworks, fostering local production, improving healthcare financing, advocating for price transparency, supporting R&D, and facilitating technology transfer, we can strive towards a more equitable and affordable healthcare system in West Africa. It is absolutely necessary for all of the relevant parties to get together and take some kind of action in order to make sure that important pharmaceuticals are available to people of all different socioeconomic backgrounds.