Country of Operation
- Ghana Social Marketing Foundation Enterprises LimitedFor-profit
Target income level
- Bottom 20%
- Lower-middle income (20-40%)
- Middle-income (40-60%)
- Higher middle-income (60-80%)
- High-income (80-100%)
SummaryCareShop Ghana was a for-profit franchise of nearly 300 licensed chemical shops that are spread throughout the Greater Accra and surrounding regions. The franchise network closed down in 2009.
Ghana Social Marketing Foundation Enterprises Limited (GSMFEL) founded CareShop in 2002, with the intention of battling common infectious diseases in low-resource areas by improving supply chains and providing training to chemical sellers through a franchising arrangement.
Key program components
GSMFEL, as the franchisor, generated revenue through the sales of inexpensive, high-quality drugs to franchisees. GSMFEL delivered these products directly to franchisee's doorsteps, and also provided them with valuable health and business training, and branded materials.
CareShop unified and standardized the fractured LCS sector in Ghana through franchising. Individual franchisees operated for-profit chemical shops and were contractually bound by clearly defined and strict regulations on diagnosis, quality, and pricing of a specific list of drugs. When properly functioning, the CareShop franchise could provide incentives for chemical sellers to comply with government and franchise regulations because it would be more profitable to do so. CareShop consisted of 276 franchised chemical shops.
"CareShops Ghana struggled and ultimately collapsed due to an inability of the franchise to maintain franchise discipline and difficulties in encouraging franchisees to transform their business practices. The franchise struggled to maintain a balance between its franchisee's demands and its own financial needs for sustainability. The pharmacists interviewed for this study that had been CareShop franchises complained that the model did not quite fit the local market needs as prices were too high, they did not offer sufficient stock or a desirable product mix and that the delivery service did not allow them to go to Accra to pick up stock, which they enjoyed. The initiative however, did provide valuable training in records keeping and business training, which they still use."
-From McCab, A. (2009) Private Sector Pharmaceutical Supply and Distribution Chains - Ghana, Mali and Malawi Authors Joel Sergre and Julia Tran should be contacted through the World Resources Institute.