Strategic Health Purchasing for Medicines: Recasting Ethiopia’s Supply Chain for Universal Health Coverage

Ethiopia has pursued supply chain reforms for over eight decades to improve access to essential medicines. While Strategic Health Purchasing (SHP) interaction with health systems and provider performance is well-documented, its specific application to the availability of essential medicines and supplies, particularly within Central Medical Stores (CMS), remains under-explored. However, evidence reveals persistent systemic gaps: fragmented governance, unsustainable financing with high facility debts, inconsistent updates to the essential medicines list, limited provider autonomy and weak links between payments and health systems performance. Implications: These systemic weaknesses undermine progress towards Universal Health Coverage (UHC) goals. To address them, the Ethiopian Pharmaceutical Supplies Services (EPSS) must deliberately apply Strategic Health Purchasing (SHP) principles, prioritizing the integrating of information systems, financial discipline, refined governance and performance linked provider payments.

Publication Year:

2026

Publisher

SPARC

Author:

Amanuel Haileselassie, Shadrack Gikonyo, David Olpengs, Boniface Mbuthia, Moreen Mwenda, Lizah Nyawira, Leonora Mbithi, Jennifer Mamwa, Lisanu Taddesse, Addis Tamire
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A message from the partners of the Strategic Purchasing Africa Resource Center (SPARC)

Since 2018, The Strategic Purchasing Africa Resource Center (SPARC) has been a unique and significant force in supporting countries within Sub-Sahara Africa (SSA) in crucial areas of strategic health purchasing (SHP), Healthcare Financing as they make progress towards the realization of Universal Health Coverage (UHC) goals. This initiative, a collaboration between Amref Health Africa and Results for Development (R4D), has made expertise in these areas more accessible and has been instrumental in the progress of the target countries. The initiative was designed to advance policy discussions and actions that strengthen the application of strategic health purchasing to strengthen African health systems and support countries as they address foundational reforms…