Economic meltdown: Chamber of Pharmacy, others threaten 'Cash and Carry' system

The Chamber of Pharmacy Ghana has announced the adoption of the Cash and Carry regime for the supply of pharmaceutical products to government and other institutions. The Chamber, including the Pharmaceutical Manufacturers, Importers and Suppliers say, the current economic downturn including the exchange rate is telling on their business hence the move. Addressing a Press Conference in Accra, chairman of the Ghana National Chamber of Pharmacy, Harrison K. Abutiate explained that, the move has become necessary to save their ailing businesses. “The Pharmaceutical Industry is credit-driven. Public Sector pays on the average 6-12 months, because of delayed payments of the National Health Insurance Scheme(NHIS). Majority of private facilities make payments for all supplies within 3-4 months. In the current circumstances of daily devaluation of the cedi, it’s imperative to state that pharmaceutical supplies on credit under this time has led to erosion of operational capital of pharmaceutical importers and manufacturers,” he said. He said the fast depreciation of the cedi has affected the price of medicines on the counter as some pharmaceutical supplies are up by 100 percent as a result of the devaluation of the local currency. He also bemoaned the reversal of the discount on benchmark value which has negatively impacted the cost of doing business in the country. According to him, if the situation remains the same, local manufacturers will be forced out of business to create room for fake products to dominate the market. “On the industry front interest in continuous investment in official and pharmaceutical business is waning. Very soon a sizeable number of industry players may be forced to fold up or lay off staff. This becomes a dangerous recipe for criminals to engage in nefarious activities and flood the market with fake and sub-standard products just to compromise quality and efficacy of medicines, thereby putting the health of all Ghanaians at risk. “The National Chamber of Pharmacy, the Pharmaceutical Manufacturers Association of Ghana, and the Pharmaceutical Importers and Wholesalers Association of Ghana, therefore call for an immediate action to save the industry. “The Ministry of Finance and Economic Planning should release funds to immediately to pay for the long-standing debt of over 9 months and to push to clear all overdue debts.”

The Chamber of Pharmacy Ghana has announced the adoption of the Cash and Carry regime for the supply of pharmaceutical products to government and other institutions. The Chamber, including the Pharmaceutical Manufacturers, Importers and Suppliers say, the current economic downturn including the exchange rate is telling on their business hence the move. Addressing a Press Conference in Accra, chairman of the Ghana National Chamber of Pharmacy, Harrison K. Abutiate explained that, the move has become necessary to save their ailing businesses. “The Pharmaceutical Industry is credit-driven. Public Sector pays on the average 6-12 months, because of delayed payments of the National Health Insurance Scheme(NHIS). Majority of private facilities make payments for all supplies within 3-4 months. In the current circumstances of daily devaluation of the cedi, it’s imperative to state that pharmaceutical supplies on credit under this time has led to erosion of operational capital of pharmaceutical importers and manufacturers,” he said. He said the fast depreciation of the cedi has affected the price of medicines on the counter as some pharmaceutical supplies are up by 100 percent as a result of the devaluation of the local currency. He also bemoaned the reversal of the discount on benchmark value which has negatively impacted the cost of doing business in the country. According to him, if the situation remains the same, local manufacturers will be forced out of business to create room for fake products to dominate the market. “On the industry front interest in continuous investment in official and pharmaceutical business is waning. Very soon a sizeable number of industry players may be forced to fold up or lay off staff. This becomes a dangerous recipe for criminals to engage in nefarious activities and flood the market with fake and sub-standard products just to compromise quality and efficacy of medicines, thereby putting the health of all Ghanaians at risk. “The National Chamber of Pharmacy, the Pharmaceutical Manufacturers Association of Ghana, and the Pharmaceutical Importers and Wholesalers Association of Ghana, therefore call for an immediate action to save the industry. “The Ministry of Finance and Economic Planning should release funds to immediately to pay for the long-standing debt of over 9 months and to push to clear all overdue debts.”