Department of Health Announces 2.88% Increase in Medicine Prices

Pretoria:The Department of Health has announced a 2.88% increase to the Single Exit Price (SEP) of all registered medicines listed on the national database, effective from 1 October 2026. This adjustment is aimed at addressing exceptional domestic and geopolitical pricing pressures impacting the pharmaceutical sector.

According to South African Government News Agency, the department stated that the price increase is intended to provide manufacturers with relief to ensure the continued supply of medicines while maintaining affordability for patients and medical schemes. The increase will apply to all medicines registered and listed in the national database as of 30 September 2026, covering all related pack sizes.

The decision came after extensive discussions between the government and the pharmaceutical industry, which highlighted rising input costs, supply chain issues, and geopolitical factors as significant risks to medicine availability. The adjustment is part of ongoing efforts to balance affordability with sustainable supply, offering temporary relief to manufacturers facing cost pressures, particularly due to geopolitical tensions.

The SEP represents South Africa's regulated maximum price for medicines sold in the private sector, and it is the sole price at which manufacturers or importers may sell medicines to buyers, including pharmacies, dispensing doctors, and hospitals. The SEP does not apply to state purchases. This pricing framework aims to enhance the affordability and predictability of medicine costs, ensuring that different buyers do not pay varying prices for the same medication.