By President John Mahama has asked the Finance Minister, Dr Cassiel Ato Forson, to immediately find solutions to address the gaps in the country’s health sector funding following the suspension of USAID assistance.
In a letter addressed to the minister, the president called for urgent action, as the situation is likely to affect Ghana’s efforts in addressing issues such as maternal health, HIV/AIDS, family planning, and childbirth. Mr. Mahama highlighted that the country is to face a funding shortfall of $156 million due to the suspension of USAID support.
The president has urged the finance minister to explore alternative funding sources to bridge this gap and mitigate any adverse effects the country may face.
Upon taking office in January, US President Donald Trump suspended USAID, a key form of international assistance provided by the USA to other countries. The suspension has since impacted many African nations in various ways.
Already, the decision is affecting the Last Mile Distribution (LMD) of essential health commodities in Ghana’s three northern regions. The United States Agency for International Development (USAID) has suspended its support for supply chain activities through Chemonics, affecting the Last Mile Distribution (LMD) of essential health commodities in Ghana’s three northern regions.
The suspension has resulted in a directive for SkyNet Express, the logistics company responsible for transporting medical supplies, to halt operations for a period of 90 days. This action has raised significant concerns about the availability of essential medicines and health commodities, particularly in the Northern, Northeast, and Savannah Regions, which rely on the Northern Regional Medical Stores for distribution.
In a letter directed to the Director General of the Ghana Health Service, the Regional Director of Health Service, Northern Region, Dr Abdulai Abukari noted that the suspension is expected to disrupt key areas within the healthcare system, including:
- Last Mile Distribution (LMD): The halt in distribution services is likely to cause stockouts of essential medicines, vaccines, and other critical health supplies, severely affecting healthcare service delivery in the affected regions.
- Procurement and Supply Chain Management: The withdrawal of technical assistance and logistics coordination previously provided through Chemonics will undermine inventory management, tracking, and reporting systems, making it harder to maintain a steady supply of commodities.
- Public Health Programme Implementation: USAID-funded programmes supporting maternal and child health, malaria prevention and treatment, family planning, and HIV/AIDS services are at risk of experiencing shortages, which could negatively impact service delivery and patient care.
In response to the crisis, the Regional Health Management Team (RHMT) convened an emergency meeting with District Health Management Teams (DHMTs) and Budget Management Centre (BMC) heads to assess the impact and explore mitigation strategies, the letter added.
It continued “following deliberations, it was agreed that SkyNet Express—previously engaged by USAID for LMD—could serve as a temporary solution to maintain scheduled distributions for 2025 while alternative funding and long-term strategies are sought.”
Dr. Abubakari has therefore called for interventions to bridge the supply chain gaps.
He emphasized the need for engagement with key stakeholders and development partners to explore contingency measures, including alternative funding sources and distribution mechanisms, to sustain critical health services.
