Medicine prices in South Africa’s private healthcare sector will increase by 2.88% from Thursday as the Department of Health implements an extraordinary second Single Exit Price Adjustment for 2026.

The adjustment applies to all registered medicines and scheduled substances listed on the national database as at 30 September 2026, including different pack sizes.

The Department of Health said the increase was necessary because of exceptional domestic and geopolitical pressures affecting the pharmaceutical sector.

The 2.88% adjustment takes effect on 1 October and is intended to provide temporary relief to medicine manufacturers facing rising costs while attempting to maintain the availability and affordability of medicines for patients and medical schemes.

Departmental spokesperson Foster Mohale said the adjustment followed sustained discussions between government and the pharmaceutical industry.

The engagements identified rising input costs, pressure across supply chains and geopolitical factors as risks to the continued availability of medicines.

The department said the latest adjustment was aimed at balancing the need to keep medicines affordable with the sustainability of the pharmaceutical supply chain.

“This extraordinary price adjustment is intended to provide temporary relief to manufacturers facing cost pressures arising from, among other factors, geopolitical tensions,” the department said.

The increase is the second extraordinary Single Exit Price Adjustment announced for medicines in 2026.

The Single Exit Price is the regulated maximum price at which medicines can be sold in South Africa’s private sector.

Under the SEP system, manufacturers and importers may only sell a medicine at the regulated price to buyers, including pharmacies, dispensing doctors and private hospitals.

The system does not apply to medicines supplied through the state.

The department said the SEP framework was designed to improve the affordability and predictability of medicine costs while preventing different buyers from paying different prices for the same medicine.

The latest increase means patients purchasing medicines in the private sector will face higher prices from Thursday, although the actual rand increase will depend on the existing SEP of each medicine.

Government said the adjustment was not intended to remove affordability protections but to respond to pressures that could affect the supply of medicines.

The pharmaceutical sector has faced increased costs linked to production inputs and supply chains, with international and geopolitical developments adding further pressure.

The Department of Health said the adjustment was therefore part of efforts to protect the sustainability of medicine supply while limiting the impact on patients and medical schemes.

The SEP applies only to the private sector, meaning medicines supplied through the public healthcare system are not affected by the adjustment in the same way.

The department said the new price adjustment applies to medicines registered and listed on the national database by 30 September.

The move comes as South Africa continues to balance pressure on household healthcare costs with the need to ensure that pharmaceutical companies can continue supplying medicines to the market.

Mohale said government remained engaged with the pharmaceutical sector on pricing and supply issues.

The department said the 2.88% adjustment would provide manufacturers with relief from exceptional cost pressures while maintaining access to medicines for patients.

The new prices will come into effect on 1 October 2026.

For patients who purchase medicines through private pharmacies, dispensing doctors and private hospitals, the adjustment means the regulated maximum price of affected medicines will increase from Thursday.