The Progressive Licensing Scheme (PLS) is a regulatory framework introduced by the Food and Drugs Authority (FDA) to facilitate the formalization and gradual compliance of Micro/Cottage and Small-Scale Enterprises (MSEs) operating in the
food (excluding water), cosmetics, and household chemical industries. This initiative provides small businesses with a structured and supportive pathway toward full regulatory compliance while allowing them to operate legally.

Many MSEs face challenges such as limited financial resources, inadequate technological capacity, and lack of infrastructure, making it difficult for them to meet full regulatory requirements immediately. However, these businesses play a critical role in Ghana’s economy by fostering local industry growth and contributing to economic transformation. The PLS is designed to support their development while ensuring public health and safety.

The PLS applies to Micro and Small-Scale Enterprises that:

• Employ between one (1) and five (5) people directly involved in production.

Recognizing the constraints faced by these businesses, the PLS allows them to operate under a phased compliance system, giving them the opportunity to gradually meet FDA requirements without facing immediate regulatory burdens.

The PLS introduces a structured, three-stage licensing system aimed at improving the safety, quality, and wholesomeness of locally produced food, cosmetics, and household chemical products. The goal is to encourage compliance with the Public Health Act, 2012 (Act 851) while fostering a thriving local industry. By ensuring adherence to safety and quality standards, the scheme enhances product traceability and recall capabilities, further strengthening consumer protection.

The PLS seeks to accelerate the growth of Ghana’s local manufacturing sector, with a target that at least 60% of grocery stores and supermarkets stock Made-in-Ghana products.

The PLS operates on a risk-based Good Manufacturing Practices (GMP) standard, where applicants undergo inspections and receive certification based on their compliance level. Licenses are awarded in three progressive categories:

• Pink (Level 1) – Initial stage of compliance.
• Yellow (Level 2) – Intermediate compliance stage.
• Green (Level 3) – Full compliance with regulatory standards.

This progressive certification system ensures that businesses have a clear pathway to achieving full regulatory compliance, promoting safe and high-quality local production.

Through the PLS, the FDA remains committed to safeguarding public health, supporting local industry growth, and enhancing consumer confidence in Ghanaian-made food, cosmetics, and household chemical products.