Government has secured grants to the tune of GH¢415million for local pharmaceutical manufacturers under the One District, One Factory (1D1F) initiative, Trade Minister Alan Kyerematen has said.
The amount, aimed at providing long-term competitive financing, was secured from local lenders in partnership with the ministry. In all, 11 out of 13 pharmaceutical firms under the IDIF programme benefitted from the grant.
“I am happy to report that at the end of December 2021, 11 out of the 13 pharmaceutical companies under the 1D1F initiative have received support to the tune of GH¢415.3million,” Mr. Kyerematen said.
He spoke at the inauguration of Atlantic Lifesciences Limited, a new pharmaceutical company in Accra, and said the amount is to support expansion, retooling, working capital or build entirely new manufacturing facilities in the country.
The company will operate under the ID1F programme, where it will enjoy tax exemption for a five-year period.
Mr. Kyerematen said government remains committed to making the country a pharmaceutical manufacturing hub in West Africa.
“A recent report on Ghana’s pharmaceutical industry indicated that the country will become the hub of pharmaceutical production in sub-Saharan Africa. It is important to state that Atlantic Lifesciences is leading the way in the production of vaccines at this ultra-modern facility,” he said.
The same report, he noted, also indicated that pharmaceutical sales in the country reached US$462million in 2020 and US$468million in 2021, and is expected to reach US$544million in 2025 with sales expected to peak at US$896million by 2030.
This positive outlook, he reiterated, will position Ghana as a hub for pharmaceutical manufacturing in the sub-region.
Aside from the grant, the minister said under the Ghana CARES ‘Obaatan Pa’ programme, government through the Ministry of Trade and Industry and Municipal and District Assemblies, will provide a number of supporting interventions for the pharmaceutical sector to take full advantage of emerging opportunities.
These include upgrading pharmaceutical companies to achieve World Health Organisation Good Manufacturing Practice (GMP) standard; provision of management and technical assistance to enhance operational efficiency; and establishment of a bioequivalence centre to support the local pharmaceutical manufacturing industry.
“I am happy about this event today because Atlantic Lifesciences Limited was accepted into the 1D1F Programme in 2017,” he said, adding that it has become the 107th company to be operational under the programme.
The promoter and management’s decision to locate this facility in the country underscores the confidence that the private sector continues to show in government’s programme of industrial transformation, especially the ‘One District, One Factory’ (1D1F) initiative.
“In conclusion, I wish to state that government will continue offering support so the pharmaceutical sector becomes more competitive and produces for both local and foreign markets,” he said.
