Pharmaceutical Pricing in Ethiopia

The current Ethiopian health care system is characterized by continuous reforms in terms of increasing the health service coverage and improving the quality of life of the population. Although communicable diseases are still the major causes of morbidity and mortality, the country's health system has to also endure the burden of increasing prevalence of non-communicable diseases. The expansion of health facilities and the double burden of communicable and chronic non-communicable diseases necessitate efficient financing systems which ensure availability of affordable medicines in the country. Pharmaceutical prices in Ethiopia are not controlled by the government. Moreover, the pharmaceutical pricing situation is characterized by absence of clear policy, high retail markups, and high variation of prices of medicines. Affordability is an issue because out of pocket expenditure on pharmaceuticals constitutes a major share of healthcare spending. However the government of Ethiopia is currently in the process of instituting social health insurance schemes in the country. It is therefore recommended that appropriate pricing policies complemented by proper pharmacoeconomic evaluation system should be introduced with the social health insurance schemes.