Macroeconomic Reform Boosts Medicine Supply in Ethiopia

Addis Ababa: The Ethiopian Pharmaceutical Supply Service (EPSS) has highlighted a significant increase in the contribution of the private sector to Ethiopia’s medicine supply following recent macroeconomic reforms.

According to Ethiopian News Agency, Ethiopia has been implementing comprehensive macroeconomic reforms since July 2024. These reforms aim to address foreign exchange imbalances, strengthen the balance of payments, construct a robust monetary policy framework, and manage inflation. Over the past nine months, these measures have notably improved the country’s medicine supply.

Abdelkadir Gelgelo, the Director General of EPSS, stated that the private sector’s role in medicine provision was previously limited. However, recent macroeconomic changes have opened the sector for broader participation. He explained that the reforms have helped alleviate foreign exchange deficits and enhanced the competitiveness of local pharmaceutical manufacturers.

Gelgelo further explained that the macroeconomic reform has expanded the market and increased opportunities for private sector engagement, inviting all interested parties to participate. Consequently, the number of local suppliers has risen, reflecting Ethiopia’s ambition to develop a self-sustaining medicine supply system.

The EPSS has been implementing legal and institutional reforms to further consolidate the medicine supply chain. Gelgelo noted that a three-year contract has been secured to ensure a consistent flow of essential medicines through a reliable supply system.