PMAG Urges Ghana Government to Recover Substantial Debts Owed by Sahel Nations for Supplied Medicines

Introduction

In a pressing call to action, the Pharmaceutical Manufacturers Association of Ghana (PMAG) has urged the Ghanaian government to intervene and recover outstanding debts owed by Sahel nations for medicines supplied by local pharmaceutical companies. This issue highlights critical challenges in regional pharmaceutical trade in West Africa, where unpaid bills totaling hundreds of thousands threaten the financial health of Ghanaian manufacturers and the country’s vision to become a pharmaceutical hub in the sub-region.

Delivered during a media engagement in Accra on November 6, 2025, PMAG President Dr. Samuel Amo Tobbin emphasized the need for diplomatic efforts to secure these payments from governments in countries such as Burkina Faso, Mali, Senegal, and Côte d’Ivoire—excluding Nigeria. This development underscores the importance of debt recovery in Ghana’s pharmaceutical exports and its role in sustaining industry growth amid regional health demands.

Why This Matters for Ghana’s Pharma Sector

Ghana’s pharmaceutical industry has positioned itself as a key supplier of essential medicines to neighboring West African countries, particularly in the unstable Sahel region where access to healthcare is limited. Unresolved debts could stifle expansion, making government intervention essential for PMAG debt recovery efforts.

Analysis

The core issue revolves around Ghanaian pharmaceutical firms supplying medicines to Sahel nations on credit extended to government entities, leading to prolonged payment delays. Dr. Tobbin, Executive Chairman of the Tobinco Group and PMAG President, noted that these debts are “considerable” but refrained from disclosing exact figures to avoid spotlighting individual debtors.

From an economic standpoint, such arrears disrupt cash flow, forcing manufacturers to divert resources from research, production, and expansion. This analysis reveals how unpaid pharmaceutical exports from Ghana could erode investor confidence and hinder the sub-regional hub strategy promoted by Ghana’s leadership.

Economic Impact on Local Manufacturers

Prolonged outstanding payments strain operational costs, including raw material imports and workforce salaries. For context, Ghana’s pharma sector contributes significantly to GDP and employment, with exports forming a growing revenue stream. Without recovery, firms risk insolvency, as warned by PMAG.

Regional Trade Dynamics

Sahel nations, facing security challenges and health crises, rely on imports from stable producers like Ghana. However, fiscal constraints in these countries lead to payment backlogs, a common issue in intra-African trade documented by bodies like the African Union and ECOWAS.

Summary

PMAG’s appeal centers on recovering debts from Burkina Faso, Mali, Senegal, Côte d’Ivoire, and other sub-regional governments for medicines supplied by Ghanaian companies. Dr. Tobbin called for high-level diplomatic coordination, while Parliament’s Health Committee Chairman Dr. Mark Kurt Nawaane pledged stakeholder engagement to address these challenges and bolster the sector’s potential. Published on November 9, 2025, by Life Pulse Daily, this news spotlights the urgency of Ghana pharma debt recovery from Sahel countries.

Key Points

Practical Advice

For Ghanaian pharmaceutical manufacturers facing similar debt recovery challenges in West Africa, consider these actionable steps grounded in standard industry practices:

Strategies for Manufacturers

Implement robust contract clauses requiring letters of credit or advance payments for government deals. Engage export credit agencies like the Export Development and Agricultural Bank of Ghana (EDAG) for insurance against non-payment. Diversify markets beyond Sahel nations to include stable partners like the EU or East Africa.

Government and Diplomatic Steps

Ghana’s executive can leverage bilateral agreements and ECOWAS protocols for debt resolution. Parliament’s Health Committee should prioritize hearings with the Ministry of Health and Foreign Affairs. PMAG members can form a task force to compile verified debt ledgers for official submission.

Documentation Best Practices

Maintain detailed invoices, delivery proofs, and correspondence records to support arbitration claims under international trade laws like the New York Convention.

Points of Caution

While pursuing PMAG-led debt recovery from Sahel nations, exercise these precautions to avoid escalation:

Risks of Diplomatic Interventions

High-level appeals must balance recovery with regional relations; aggressive tactics could strain ECOWAS ties. Avoid public naming of debtors, as Dr. Tobbin did, to prevent backlash.

Financial Vulnerabilities

Limit credit exposure to 30-60 days for government buyers in volatile regions. Monitor Sahel fiscal reports from sources like the IMF to anticipate delays.

Supply Chain Disruptions

Ongoing instability in Sahel countries (e.g., coups in Burkina Faso and Mali) may worsen payments; prepare contingency plans like halting supplies until partial payments.

Comparison

Ghana’s pharmaceutical debts from Sahel nations mirror broader African trade issues. For instance, Nigerian exporters have faced similar unpaid bills from Central African states, resolved via AU mediation. In contrast, Kenya’s pharma sector benefits from stronger East African Community enforcement mechanisms, reducing arrears by 40% per recent UNCTAD reports.

Ghana vs. Regional Peers

This comparison shows Ghana could enhance recovery by adopting hybrid diplomatic and legal approaches used successfully elsewhere.

Legal Implications

Debts from government-to-private supplies fall under international contract law, enforceable via Ghana’s Contracts Act and bilateral investment treaties. Applicable frameworks include ECOWAS Trade Liberalisation Scheme protocols, which mandate fair payment terms. Disputes may proceed to arbitration under the International Chamber of Commerce (ICC) rules, as Ghana is a signatory to the New York Convention on foreign arbitral awards.

Enforceability Considerations

Government sovereign immunity limits direct lawsuits, favoring diplomatic channels. Verified contracts with sovereign guarantees strengthen claims, but Sahel political instability complicates enforcement. No speculation on outcomes; recovery hinges on verifiable documentation.

Conclusion

The PMAG’s urgent plea for Ghana government intervention in recovering pharmaceutical debts from Sahel nations is pivotal for the industry’s sustainability. By fostering diplomatic collaboration and stakeholder engagement, Ghana can protect its manufacturers, realize its pharmaceutical hub vision, and strengthen West African health supply chains. Swift action will not only recover funds but also build resilient regional trade partnerships.

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