Bank of Ghana meets Ghana National Chamber of Pharmacy on Credit Reporting System

Before the meeting on 11th May, 2023, a statement issued by the BoG said the expanded list will now include; telecommunication companies, utility companies, retailers, mobile money operators, financial technology companies (FinTechs) and government institutions that offer credit to MSMEs hence the meeting with GNCoP members.

Dr. Kwasi Osei-Yeboah who is the Assistant Director at Bank of Ghana started his speech by expressing his sincere gratitude to all for honoring the invitation, particularly the Ghana National Chamber of Pharmacy (GNCoP) for according to Bank of Ghana the audience when this process started.

He continued by stating that Bank of Ghana is pleased to have been in locked-step through the on-boarding process for the Chamber to become data providers in the credit reporting system.

“While we take an industry-wide view of developments in the credit reporting space and for that matter promote broad participation across relatable segments, we see significant upside for entities that sign on. In the scenario where the generation of trade credits feature prominently in business operation, having some level of certainty about the credit worthiness of associates is a critical ingredient to mitigate risks in business decision-making,” he added.

Pharm. Harrison Kofi Abutiate who is the current Chairman at Ghana National Chamber of Pharmacy (GNCoP) started his address by welcoming every participant that day including the organizers of the educational session, Bank of Ghana on behalf of the National Executive Council (NEC) and all members of Ghana National Chamber of Pharmacy (GNCoP).

“A major Government of Ghana policy is to make Ghana the pharmaceutical hub in Sub Sahara Africa. It is our expectation that all being well, within the next short to medium term, Ghana will be able to produce 60% -70% 0f medicines that are consumed locally and for export. Other major policy areas are Textiles and automobile industry,” he added.

“As you may know, this is criminal! Pharma industry Wholesalers also have this unwritten law of giving 30 days credit to community pharmacies and other clients without any reference as to their ability to pay on due date. I must confess that public institutions also have failed most of us by unduly delaying payment to pharma suppliers and yet the government agencies are the first to come and hold us to ransom, to payment of all manner of taxes upfront.” he retorted.

Pharm Abutiate quoted, “Pursuant to the Credit Reporting Regulations, 2020 ( L .I .2394) the list of institutions required to participate in the Credit Reporting System (CRS) established under the Credit Reporting Act 2007 (Act 726) shall include corporate companies that provide credit facilities.”

“It is in respect of this that, the National Executive Council of the Ghana National Chamber of Pharmacy on Thursday 2nd June 2022 organized by Samuel Kwame Boadu, the administrative officer and Digital Marketing Consultant for Chamber of Pharmacy, Ghana, met with the Bank of Ghana Team from the Financial Stability Department at the Chamber’s secretariat to discuss the modalities leading to the designation of the Chamber as Data Providers to credit bureaus, in respect of credit facilities given by pharmaceutical companies to hospitals, clinics, companies and institutions.

This will enable pharmaceutical companies the opportunity to obtain this service, from Chamber, on the credit behavior of clients prior to establishing credit relationships with them,” he continued.

Pharm. Kofi Addo-Agyekum, Founder of Kofikrom Pharmacy Limited, who is a member of the National Executive Council (NEC) of Ghana National Chamber of Pharmacy, gave a speech on the overview of the operations of the Pharmaceutical Industry focusing on the credit transactions of GNCoP’s members.

He started his speech by recalling that when he graduated from the University around 1995 there was less competition in the pharmaceutical market, few industry players etc. so checks on operations in the pharmaceutical industry was easy hence issues of debt like what we are hearing now was not a problem.

“As of 2021, healthcare expenditure in Ghana was valued at GHS14.5bn (USD2.4bn), with public healthcare expenditure accounting for just over 45% of the overall market share. We expect this to increase as a proportion of total healthcare spending as demand for healthcare increases and gradual reforms to Ghana’s National Health Insurance Scheme (NHIS) are implemented.

Healthcare spending represents 3.5% of GDP with per capita spending at USD81.2. Private healthcare expenditure was valued at GHS8.4bn (USD1.4bn) in 2021, corresponding to 55% of the total market share.

Within this market, the government of Ghana is a major player, both as a regulator of the market and as a buyer involved directly in the wholesale and supply of drugs and healthcare services.

Concerns about the provision of relatively cheap and effective drugs to the mass population have led to several government-led and/or private sector-led initiatives in the pharmaceutical sector of Ghana yet the Government who is the major player is failing the pharmaceutical companies with delay payments. How can these pharmaceutical companies who are not paid on time continue with their businesses?” he questioned.

“As we are being introduced to this Credit Reporting System, I will urge Bank of Ghana to review this system to include government led institutions and not only individuals and private led institutions and I think that will help the pharmaceutical companies keep track of all their debtors or debts,” he concluded.

Samuel Kwame Boadu, the administrator and part of the organizing team after every speech, bemoaned and concluded that Bank of Ghana in their capacity must talk to Banks to support the Community Pharmacies so they can continue to provide quality pharmaceutical care while paying their suppliers promptly to avoid dud cheques.

By this, clients who are on medications for non-communicable diseases like hypertension, diabetes etc. would always have access to their medicines at affordable prices and live a longer quality of life.