Private pharmacies in Rwanda will now operate under a fixed markup ceiling of 33.5 per cent, following the release of new pharmaceutical pricing guidelines by the Rwanda Food and Drugs Authority (FDA). ALSO READ: Inside Rwanda’s medical store, health commodity access and supply chain The guidelines, which also set price caps for wholesalers and public health facilities, are aimed at promoting fair pricing and ensuring medicines remain affordable for patients nationwide. The markup is the amount of money added to the cost of a product to cover all expenses and profit. ALSO READ: Private health facilities push for reforms in medical tariff setting Under the new guidelines, public hospitals, health centers and health posts are limited to a 20 per cent markup, while private drug wholesalers are capped at 25 per cent. Drug prices by retail private pharmacies, including those operating within private hospitals, have a ceiling of 33.5 per cent. Public wholesalers such as Rwanda Medical Supply (RMS), Bureau des Formations Médicales Agréées du Rwanda (BUFMAR), and Mediasol Pharmaceutical Depot will operate under the 20% ceiling. ALSO READ: Drugs covered by Mutuelle double with Rwf20bn more funding The FDA explained that these rates were established after careful review of evidence and recommendations from the Pharmaceutical Pricing Advisory Committee (PPAC). The authority emphasized that the new framework is designed to protect patients from excessive mark-ups and unjustified charges, which have long inflated medicine prices along the supply chain. “By setting clear limits, we hope to address issues of transparency, price variation, and cumulative costs that have long challenged Rwanda’s pharmaceutical market,” Rwanda FDA said in a statement. While the framework introduces caps at multiple supply levels, Rwanda FDA acknowledged that controlling the cost of high-priced medicines remains challenging. ALSO READ: How private clinics, pharmacies are defrauding insurance providers To tackle this, the guidelines include a regressive markup structure, reducing percentage markups on expensive medicines. This approach ensures lifesaving drugs, such as cancer treatments, antidiabetic medications, cardiovascular therapies, orphan drugs, and biological drugs, remain accessible to patients. What the 33.5% cap means for private pharmacies For private pharmacies, the 33.5 per cent ceiling is expected to stabilize medicine pricing while allowing businesses to remain viable. Pierre Celestin Munana, Managing Director of El Jee Pharmacy in Rubavu District, welcomed the move. “Just like fuel prices are known and published everywhere, medicine prices should follow the same principle,” Munana told The New Times. “These guidelines are timely because they will eliminate confusion and prevent unscrupulous practices that exploit patients.” ALSO READ: Rwanda, Qatar ink deal to boost local drug production, access Diana Mutoni, Deputy CEO at Rwanda Medical Supply, said that as a government-owned wholesaler, the company already applies a 20% markup and makes sure it sources drugs directly from manufacturers to keep prices low. “This ensures consistent availability of essential healthcare supplies at affordable prices, and we don’t involve middlemen in order to keep the prices low,” she said. A response to past challenges Rwanda FDA’s new pricing framework follows findings from a 2019 technical report on pharmaceutical pricing, which identified gaps in oversight, price disparities, lack of transparency, and risks of cumulative mark-ups due to multiple wholesalers. By standardizing pricing across the supply chain, the guidelines aim to close these loopholes and promote fairness. Compliance will be monitored through regular audits, market surveillance, and stakeholder engagement, the regulator said. Rwanda’s pharmaceutical market is projected to reach $125.17 million (approx. Rwf182 billion ) in 2025, and maintain 1.27 per cent annual growth through 2030. According to the Rwanda Pharmaceutical Market Outlook, oncology drugs are expected to cost some $14 million (approx. Rwf20 billion), while other pharmaceuticals will contribute around $31.1 million (about Rwf43.3 billion). Key growth drivers include rising demand for specialty medicines and the development of online pharmacies.
