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Pharmacy Licensing to Shift from Distance to Population-Based System: Ghana’s Strategic Reform

Date: January 15, 2026 | Source: Life Pulse Daily (Adapted)

Introduction

In a landmark move aimed at revolutionizing healthcare delivery, the Government of Ghana is set to overhaul its pharmacy licensing framework. The Ministry of Health, led by Minister Kwabena Mintah Akandoh, has announced a decisive shift from a distance-based licensing model to a population-based system. This reform is not merely an administrative change; it represents a strategic pivot toward equity, accessibility, and Universal Health Coverage (UHC).

For decades, the placement of pharmacies in Ghana was governed by proximity rules—essentially dictating how far a new pharmacy could be from an existing one. While this was intended to prevent market oversaturation in urban centers, it inadvertently stifled access in rural and underserved areas. This article provides a comprehensive analysis of this policy shift, exploring its background, practical implications, and the anticipated impact on Ghana’s healthcare landscape.

Key Points

Background

To understand the significance of this reform, one must examine the limitations of the outgoing system.

The Distance-Based Licensing Model

Historically, the Pharmacy Council of Ghana regulated the establishment of new pharmacies and chemical shops based on geographic proximity. The prevailing rule often stipulated a specific radius (e.g., 500 meters to 1 kilometer) within which a new pharmacy could not be established if an existing one was already present.

The Problem: While this model prevented clustering in affluent urban neighborhoods like Accra’s Airport Residential Area or Kumasi’s Adum, it created a “pharmacy desert” in rural regions. In sparsely populated areas, the distance requirement made it economically unviable for pharmacists to operate, as the catchment population was too small to sustain the business. Conversely, in overcrowded slums, the lack of space often prevented new licenses, leading to overburdened facilities.

The Imperative for Universal Health Coverage (UHC)

Ghana, like many African nations, has committed to the United Nations Sustainable Development Goals (SDGs), specifically Target 3.8: achieving Universal Health Coverage. A critical component of UHC is access to essential medicines. The World Health Organization (WHO) estimates that over two billion people globally lack access to essential medicines. In Ghana, geographic barriers remain a significant contributor to this statistic. The Ministry of Health recognized that the existing licensing framework was a bottleneck to pharmaceutical equity.

Analysis

The directive by Minister Kwabena Mintah Akandoh signals a paradigm shift in health economics and public policy. This section analyzes the mechanics and rationale of the new population-based approach.

From Geography to Demographics

The core of the reform is the transition from measuring space to measuring demand. Under the population-based model, the licensing authority will evaluate applications based on the number of people served rather than the distance between shops.

How it Works: Regulatory bodies will assess population density and the ratio of existing pharmacies to residents. If a community of 10,000 people has only one pharmacy, the new system would likely approve additional licenses to meet the demand, even if the physical distance between locations is short. Conversely, in saturated markets where the population-to-pharmacy ratio is already low, the Council may exercise discretion to prevent economic wastage.

Addressing Disparities in Distribution

The current system has resulted in a skewed distribution of pharmaceutical services. Urban centers enjoy a surplus of pharmacies, offering convenience and choice. Rural areas, however, often require residents to travel long distances to access basic over-the-counter drugs or prescription refills.

By tying licensing to population data, the government aims to dismantle these geographic monopolies. This ensures that commercial viability does not dictate access to health, but rather the public health needs of the community.

Economic and Public Health Implications

Public Health: A population-based approach can significantly reduce morbidity and mortality rates associated with delayed treatment. For conditions like malaria, hypertension, and diabetes—which are prevalent in Ghana—timely access to medication is critical. Decentralizing pharmacy services reduces travel time, ensuring adherence to medication regimens.

Economic Viability: While the reform prioritizes access, it must balance economic sustainability. The Pharmacy Council will need to ensure that licensing in underserved areas is supported by mechanisms (such as subsidized logistics or supply chain incentives) to keep pharmacies operational despite potentially lower profit margins.

Practical Advice

For pharmacists, investors, and community members, the shift to a population-based licensing system requires adaptation. Here is a practical guide on navigating these changes.

For Pharmacists and Investors

• Conduct Demographic Research: Before applying for a license, utilize Ghana Statistical Service data to identify districts with high population density and low pharmacy coverage. Focus on peri-urban and rural growth corridors.
• Review Application Criteria: Stay updated with the Pharmacy Council’s guidelines. Expect new metrics in the application process, such as population surveys or community health needs assessments.
• Partnerships: Consider collaborating with local health centers or community-based health planning and services (CHPS) compounds to integrate your services within the existing public health infrastructure.

For Policy Makers and Regulators

• Data Integrity: Ensure that population data used for licensing decisions is current and accurate. Outdated census data could lead to misallocation of licenses.
• Monitoring and Evaluation: Establish a framework to monitor the impact of the new licenses on community health outcomes and the financial sustainability of the new pharmacies.
• Stakeholder Engagement: Maintain open channels with the Pharmaceutical Society of Ghana and other bodies to address concerns regarding market saturation.

For Community Members

• Advocacy: Communities lacking pharmaceutical services should actively petition the Pharmacy Council, providing data on their population size and access challenges.
• Utilization: Support new local pharmacies to ensure they remain economically viable, contributing to a cycle of improved local health services.

FAQ

Conclusion

The directive by Health Minister Kwabena Mintah Akandoh to transition Ghana’s pharmacy licensing from a distance-based to a population-based system is a progressive step toward Universal Health Coverage. By prioritizing human demographics over rigid geographic constraints, the policy addresses the critical imbalance in healthcare access between urban and rural Ghana.

While challenges regarding economic viability and data accuracy remain, the reform holds the potential to democratize access to essential medicines. As the Pharmacy Council implements these changes, the focus must remain on equity, sustainability, and the ultimate goal: ensuring that every Ghanaian, regardless of location, has timely access to the medicines they need.