President John Dramani Mahama has instructed the Minister for Finance, Hon. Dr. Cassiel Ato Forson, to take swift and decisive action to mitigate the financial shortfall resulting from the suspension of USAID’s international funding program.
In a statement signed by the President’s spokesperson, Felix Kwakye Ofosu, the government emphasized the urgency of the situation and reiterated its commitment to ensuring financial stability.
The statement further assured that necessary measures would be put in place to minimize the impact of the funding suspension on critical sectors and government programs.
“The President expressed deep concern over the funding gap estimated at $156 million. Of particular concern to the President is the impact of the projected $78.2 million shortfall that will adversely impact such critical interventions as malaria prevention, maternal and child health, family planning, reproductive health, nutrition, and the fight against HIV/AIDS under which the availability of antiretroviral drugs, testing, and prevention programs are threatened.”
Presidential Statement
The statement further indicated that President Mahama directed that interim financial arrangements prioritize essential health services to prevent any further disruptions.
He stressed the critical need for urgent action, warning that any delay in addressing the funding gap could result in severe public health challenges.
The President particularly highlighted the heightened risk to vulnerable populations, especially women and children, who rely heavily on these health services.
He underscored the government’s responsibility to safeguard public health and ensure that vital medical interventions remain accessible despite the funding setback.
A Call for Long-Term Solutions Amid USAID Withdrawal
Responding to the President’s directive, Dr. Kwame Sarpong Asiedu, a Democracy and Development Fellow at CDD-Ghana, recognized the importance of immediate intervention in addressing the funding shortfall.
However, he cautioned that while such short-term measures are necessary, they do not provide a sustainable solution to Ghana’s recurring financial vulnerabilities in the health sector.
Dr. Asiedu stressed the urgent need for a comprehensive, long-term strategy aimed at reducing Ghana’s heavy reliance on international health assistance.
He urged policymakers to implement structural reforms that would strengthen domestic resource mobilization, improve health sector financing, and enhance resilience against external funding shocks.
Dr. Asiedu proposed a structured approach to strengthening local pharmaceutical production to mitigate future funding crises.
“We can start by increasing the percentage of our pharmaceutical supply chain that is manufactured locally from the current 20% to between 35% to 40% over the next four years.”
Dr. Kwame Sarpong Asiedu
He suggested an assessment of Ghana’s disease burden to determine the most commonly needed medicines and prioritize their local production.
“To this end, we can look at our current disease burden and work out what medicines in our inventory will treat 80% of common diseases. Most of these will be generic medicines, which we can then incentivize local pharmaceutical manufacturers to make. We can then instruct that only these locally manufactured medicines are supplied on the NHIS for these diseases.”
Dr. Kwame Sarpong Asiedu
Economic and Health Benefits of Local Production
Furthermore, Dr. Asiedu further expounded on the economic benefits of reducing Ghana’s dependence on external health assistance, highlighting several key advantages.
He noted that a shift toward greater financial self-sufficiency would help ease pressure on the local currency by reducing the country’s exposure to fluctuations in foreign aid inflows.
Additionally, he emphasized that strengthening domestic health financing would enhance the liquidity and sustainability of the National Health Insurance Scheme (NHIS), ensuring more consistent and reliable healthcare funding.
Additionally, Dr. Asiedu pointed out that increased investment in local healthcare infrastructure and services could stimulate job creation, providing employment opportunities for healthcare professionals and related industries while fostering long-term economic growth.
“The pressure on our currency will diminish, liquidity of the NHIS will increase, jobs will be created that will generate income tax, and more importantly, the over-reliance on USAID for malaria and HIV can be curtailed.”
Dr. Kwame Sarpong Asiedu
Drawing from international examples, he highlighted India’s successful pharmaceutical industry development. “This ain’t rocket science. India started as far back as 1973 and today is a power player in pharmaceutical manufacturing. My two pence.”
Health sector experts argue that this crisis presents an opportunity for the government to implement transformative policies that will boost local pharmaceutical production and enhance healthcare sustainability.
Increased investment in research, manufacturing infrastructure, and workforce training will be crucial in ensuring that Ghana is better prepared for future funding shocks.
Meanwhile, the Ministry of Health is expected to engage with key stakeholders, including private sector partners and international agencies, to explore alternative sources of funding and resources to maintain uninterrupted healthcare services.
The USAID funding cut has sparked concerns about Ghana’s health sector’s financial sustainability, making it imperative for the government to implement both immediate relief measures and long-term solutions to strengthen the country’s healthcare infrastructure.
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