Healthy Skepticism Library item: 6240

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Publication type: news

Amailuk E.
African experts discuss national medicine pricing policies
e-drug 2006 Oct 5

Full text:

Experts from around Africa have been meeting in Nairobi from September
26-28 to discuss how to create national pricing policies to improve the
affordability of medicines.

Up to half the people who live in the poorest countries of Africa
cannot get the medicines they need, and cost often makes the difference between
whether a person can afford the best recommended treatment for their illness,
part of the treatment, or no treatment at all.

In a workshop organized by the World Health Organization (WHO) and
Health Action International (HAI) Africa, and held at the Safari Park Hotel,
representatives came from Chad, Ethiopia, Ghana, Kenya, Mali, Nigeria,
Senegal, Tanzania, Uganda and Zimbabwe. All 10 countries have recently
concluded surveys of medicine prices, using a methodology developed by
WHO and HAI. The participants at the three-day meeting included officials
from health ministries, the WHO, officials in charge of national health
insurance schemes and civil society.

Following several presentations from experts on taxes and tariffs,
margins and markups, the participants split up into groups to discuss how to
apply price policies in their countries – for example, how much of a markup
importers, wholesalers and retailers of medicines should be permitted
to gain from their transactions.

The surveys have provided reliable and comprehensive information on the
prices that African people, and their governments, are paying for
medicines, and on the various add-ons and mark-ups that contribute to the final
cost of a medicine.

In these countries where large parts of the population live on less
than $2 a day, a course of treatment for common illnesses such as asthma, HIV,
malaria, diabetes or hypertension can cost a significant chunk of a
month’s wages.

The survey methodology has enabled comparisons to be made within
countries (across sectors) and between countries. It also allows for the
measurement of affordability, by relating the cost of medicines to the salary of
the country’s lowest paid government worker. It can, therefore, be seen how
many days’ work it would take someone at such an income level to buy the
treatment they need.

The surveys have been done in over 30 countries across the world,
including 13 in Africa. These include: Cameroon, Chad, Ethiopia, Ghana, Kenya,
Mali,Nigeria, Senegal, South Africa, Tanzania, Uganda and Zimbabwe.

Developing medicine pricing policies is among the recommendations that
came out of these surveys are now being implemented, and it is hoped that
this process will be an integral part of the ongoing work of governments and
their partners to increase access to essential medicines for all
people,especially for the most poor and vulnerable.

More information on the survey results in African countries, as well as
the advocacy toolkit, can be found on http://www.haiafrica.org