Pharmaceutical players warn constant default in paying for medicines will cripple businesses

Players in the pharmaceutical sector have bemoaned the lack of proper credit financing structures to safeguard importers and wholesalers of pharmaceutical products.

According to the Ghana National Chamber of Pharmacy, goods supplied on credit are sometimes not paid for or delayed in payment, leading to cash flow issues.

Speaking to Joy Business at a stakeholders’ Meeting to streamline payment systems in the country’s Pharmaceutical Supply Chain, Chief Executive of the Council, Audrey Serwaa Bonsu highlighted the challenges, with a call to relevant stakeholders for solutions.

“We’ve seen that the system is being actively abused. People collect pharmaceutical products on credit, fail to pay back, and redirect the revenue for other personal ventures. This practice has unfortunately become the norm.”

She called on the pharmaceutical council and the players in the pharmaceutical delivery value chain to collaborate in finding a lasting solution to this menace.

“The situation is not the best. It is really affecting us (pharmacies) badly. In fact, some pharmacies have folded up due to this situation.”

To address the growing concern, Ms. Bonsu stated that the chamber is in talks with key regulatory bodies to enforce measures that will make financial default a serious offense.

She called on the Pharmacy Council to enforce punitive sanctions on defaulting retail pharmacies.

“We are working with our regulators to ensure that payment defaults directly impact license renewals. If businesses know their operating licenses can be revoked or not renewed because of non-payment, it will change behavior.”

“This is not a one man fight. It goes beyond the pharmacy space. We need all stakeholders on board from fintech and banking to regulators and business owners to ensure that integrity and accountability are restored in our sector,” the CEO emphasized.

She added that “the regulators are showing strong interest in going beyond conventional systems. They’re ready to embrace digital tools and data solutions to monitor compliance. That’s a major win for the industry.”

The forum brought together the Pharmacy Council, technology experts, Ecobank Ghana as well as members of the chamber to discuss solutions.

The Ghana National Chamber of Pharmacy (GNCoP) was established in 2013 as an advocacy organisation for the pharmaceutical business in Ghana and beyond. The Chamber also aspires to be a research hub that seeks to collect, analyse and interpret practical industry data to inform, impact and influence policy, law and regulation.

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