FDA boosts government industrialisation agenda … As MSMEs thrive under PLS initiative

The Food and Drugs Authority (FDA) has recorded more than 90 per cent in product registration following the implementation of the Authority’s flagship Progressive Licensing Scheme (PLS) introduced in July 2020.

The PLS is an initiative of the FDA launched more than two years ago, to support micro and small-scale industries to progressively comply with good manufacturing practices to ensure quality and safe products on the market.

The initiative contributes significantly to economic development by maintaining consumer confidence in the food system and providing sound regulatory foundations by supporting government's industrialisation agenda.

The PLS, coupled with the FDA’s risk-based product registration process, has ensured that locally manufactured food, cosmetics and household chemical substances reach the market faster without compromising their quality, safety or wholesomeness. 

Scheme

The scheme uses a three-tiered approach for licensing the micro and small-scale manufacturing facilities: issuing pink, yellow or green licences based on the level of compliance.

The targeted Good Manufacturing Practice (GMP) training and technical assistance provided to clients of the PLS enables them to meet the fundamental requirements of GMP.

Data from the FDA indicates that prior to the commencement of PLS in 2019, five (5) per cent of micro and small-scale enterprises that applied for licensing were licensed only after meeting the full requirements.

Following the implementation of PLS, this performance has increased to one hundred (100) per cent.

As at the end of December 2022, 952 facilities have been licensed under PLS: 660 food manufacturing facilities and 292 cosmetics and household chemical substances.

 Prior to the commencement of PLS in 2019, 52 per cent of product registration applications submitted by micro and small-scale enterprises were registered.

Following the implementation of the PLS, this performance increased to 91 per cent.

To date the total of 2,917 products have been registered under PLS: 2,405 food products and 512 cosmetics and household chemical substances.

The PLS commenced with the food industry in 2020, cosmetics and household chemical substances industry in 2021, and will also include the herbal medicine industry in 2023.

This move, the FDA explained, is to extend the success stories of PLS to the herbal medicine industry.

The PLS complements the FDA’s ‘Buy Ghana, Love Ghana’ campaign initiative which aims to stock 60 per cent locally manufactured FDA regulated products in high-end supermarket chains in Ghana.

With the commitment of collaborating supermarkets to stock products registered by the Authority, there has been an increase in the stocking and sale of registered locally manufactured products in A-rated malls and supermarkets across the country. 

Commitment

The Authority is committed to ensure that products which are registered through the scheme meet both local and international standards.

We are determined to continuously pursue this agenda with our partners, including the GEA, the Ghana Export Promotion Authority and the Ghana Standards Authority.

I call on local manufacturers to increase their production levels while maintaining high-quality standards at competitive prices in order to boost domestic demand that will drive economic growth.    

Data from the Ghana Export Promotion Authority (GEPA) shows that Non-Traditional Exports (NTEs) have significantly increased since 2017, and particularly in 2020 when the PLS was introduced.

For example, NTE earnings for the period January to December 2021 amounted to US$3.33 billion, reflecting a growth of 17 per cent over the 2020 earnings.

The bulk of these exportable products falls within the framework of the PLS, comprising cocoa paste, refined palm oil, powdered pepper, fruit juice, processed shea, plantain snacks and cosmetics, among others.

Fee

The PLS has already absorbed part of the licensing fee of some 500-member facilities to the tune of almost GH¢1.850 million.

These companies are micro or small enterprises as defined by the GEA.

The three-stage-licensing level of the PLS (i.e. Pink, Yellow and Green) focuses on small and micro-scale and cottage-scale food and cosmetics producers.

The scheme relies on high-quality, transparent and independent scientific advice.

Benefits of the scheme include access to technical support and training in GMP, shorter processing periods and subsidised application fees.

The success story of PLS cannot be told without mentioning FDA’s strong collaboration with the Ghana Enterprises Agency (GEA) Mastercard Foundation Young Africa Works programme that provided funds for young entrepreneurs on the PLS.

FDA invites all micro and small-scale manufacturers in food, cosmetics and household chemical substances and herbal medicine industries to join the scheme.  

The writer is the CEO, FDA