Indo-Ghana Industries Limited has commenced supplying locally produced liquid medical oxygen to Ghanaian hospitals. This new system marks a significant shift from traditional cylinder-based distribution to a more reliable storage-based approach. Lekma Hospital received the first delivery, enhancing its medical oxygen supply chain.
This transition aims to reduce frequent shortages and improve the reliability of medical oxygen for healthcare facilities. The previous cylinder-based model faced challenges like high logistics costs and supply interruptions. Liquid oxygen allows hospitals to store larger quantities, reducing the need for constant refills and ensuring a more stable supply. A single storage tank holds the equivalent of about 1,000 gaseous oxygen cylinders.
This development fits into Ghana's broader economic strategy to enhance local production and improve critical infrastructure. The COVID-19 pandemic highlighted the urgent need for a robust medical oxygen supply chain. Local production reduces reliance on imports and strengthens national health security. This initiative also supports the country's industrial growth, creating jobs and fostering technological advancement within the manufacturing sector.
Varun Tyagi, Managing Director of Indo-Ghana Industries, explained the benefits of the new system. He stated, “Over the years, one of the biggest challenges when it comes to distribution of oxygen is that the packaging material, the cylinders, are much more expensive than the product itself.” He added that in Africa, distribution costs are often too high. Saviour Demordzie, Head of Clinical Engineering at Lekma Hospital, confirmed the positive impact. He noted, “Our frequent calls for oxygen have reduced. There is a constant pressure and flow of oxygen at the facility.”
The shift to liquid oxygen will likely lead to more stable patient care outcomes across Ghana. Hospitals can now maintain larger reserves, reducing the risk of critical shortages during emergencies. Decision-makers will need to address challenges like delayed payments from hospitals and high electricity costs. Indo-Ghana Industries currently produces about 10 tonnes of liquid oxygen per day and plans further capacity expansion. The company also aims to develop a hub-and-spoke distribution model for wider reach.
This new supply model is crucial for improving healthcare delivery efficiency nationwide. The company's Apollonia Industrial Enclave facility has the capacity for local liquid oxygen production. This local capacity ensures a more resilient supply chain, less vulnerable to international disruptions. The move also supports the government's 'Ghana Beyond Aid' agenda by promoting self-sufficiency in vital medical supplies.
Support from development partners like USAID, CHAI, and JHPEIGO has been instrumental. These partners helped equip about 15 hospitals with the necessary liquid oxygen storage tanks. This infrastructure investment is vital for the successful adoption of the new system. The improved purity of liquid oxygen also offers better therapeutic benefits for patients.
However, the sustainability of this initiative faces several hurdles. Rising electricity costs pose a significant threat, accounting for 42 per cent to 45 per cent of production costs. Mr. Tyagi called for medical oxygen producers to be recognized as critical service providers. This recognition would ensure priority support during power disruptions, safeguarding continuous production. Such measures are common in other countries for essential industries.
The company's plan for a hub-and-spoke distribution model will further decentralize supply. This model will establish smaller filling stations closer to hospitals across the country. This strategy aims to reduce transportation distances and improve accessibility, especially for facilities in remote areas. This expansion will ensure that hospitals in places like Yendi also benefit from reliable oxygen supply.
The long-term success of this venture depends on consistent policy support and financial stability. Addressing payment delays from hospitals is critical for the company's cash flow and investment capacity. Ensuring access to long-term financing will also enable Indo-Ghana to expand its operations further. This initiative represents a significant step forward for Ghana's healthcare infrastructure and industrial capabilities.