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To help countries implement their health reforms, the World Bank and the Global Fund to Fight AIDS, TB and Malaria (Global Fund) committed to invest $24bn in Africa over the next 3 to 5 years. The Global Fund’s $9bn commitment for 2017 – 2019 includes $3bn of investments in systems for health such as strengthened procurement systems & supply chains, improved data quality & data management systems, and strengthened human resources for health.
African countries are expected to increase their domestic spendings on health with $65bn to $115bn in the coming 10 years according to WHO.
Ethiopia is among the countries that has been making significant progress in the past decade, and continues to do so: with 156 hospitals and the objective to focus on the much needed skillset training of health workers, the country makes a perfect destination for healthcare related investments. After 4 successful editions in South-Africa, Zambia, Mozambique and Ghana, Noppen Group is hosting the 5th Annual Africa Hospital Expansion Summit in Addis Ababa.
At the event government officials, investors, operators, architects, health bodies, NGO`s and contractors will be meeting medical device suppliers, technology & service vendors, distributors, consultants, banks and regulatory bodies.
May 2017 – Africa to See Healthcare Market Grow Exponentially
Private sector companies like GE, LeapFrog Investments and Babylon are finding Africa to be an up-and-coming healthcare investment target. Private sector players have been watching Africa’s healthcare market closely as of late, with good reason: The International Finance Corporation (IFC), a World Bank affiliate, estimated the sub-Saharan Africa healthcare market was worth more than US$35 billion in 2016 and estimated it will see an additional US$30 billion in hospital and clinic investment by 2022. Companies like GE Healthcare, Siemens and Philips are adapting their business models to the needs of the region and tailoring their available diagnostic and imaging equipment to match the growing incidence of non-communicable diseases. Farid Fezoua, the head of GE Healthcare Africa, believes even analysts have underestimated the opportunity that the African healthcare market presents, especially given the disease burden shift away from communicable diseases. Despite the WHO’s estimation that one million Africans will die from cancer by 2030, necessary treatment options are predominantly unavailable. Read More
May 2017 – Rx Health making waves in East Africa
Egyptian fund Rx Health Management is closing in on deals in Tanzania and Kenya, says the chairman of the African Health Federation (AHF). Healthcare entrepreneur Dr Amit Thakker told Healthcare Nova at the IFC Global Healthcare Conference in Barcelona earlier this month that Rx Health was in talks with groups in the two east African countries. He would not give further details, but also pointed to the investor Catalyst Principle Partners, which sold its stake in the Kenyan pharmacy group Goodlife to Leapfrog Investments last year, as a major player in the East African healthcare space that’s currently in the market for assets. Long term, he’s convinced the opportunity in the region will come from cross-border regional integration, which harmonises regulation and opens up bigger markets, but also the growth of digital health solutions. We also heard from other sources that Abraaj is finally getting its Kenyan cardiology hospital off the ground after local difficulties. Read More
May 2017 – Incentivising the private Healthcare Sector in Africa
… The World Bank has reported that between 2005 and 2012, Africa acquired 70,000 new hospital beds, 16,000 doctors and 60,000 nurses. Coupled with existing infrastructure, this additional resource now totals one million hospital beds, 500,000 doctors and 1,250,000 nurses, suggesting that the greatest demand will be in the healthcare services, particularly in-patient services.
These demands are expected to be met by for-profit organisations, non-government organisations and social enterprises and companies are already getting involved: social enterprises have been set up in Nairobi by the Phillips Africa Innovation Hub, and Novartis has initiated an access Public-Private Partnership (PPP) with Kenya, Ethiopia and Rwanda. The non-governmental organisation (NGO), United States Pharmacopeia Convention, is working with sub-Saharan countries to promote the quality of medicines made by strengthening quality assurances and quality control. The largest influx of investment so far has been focused on building and improving physical capacity in the form of hospitals and clinics and is an effective strategy to improve healthcare infrastructure. The IFC and its partners are currently the largest investors in private healthcare in Africa, and recently implemented a strategy to invest US$1 billion to assist economic development by encouraging growth of productive private enterprises in underdeveloped areas.
The IFC’s funding initiative has seen the development of 44 such investment projects to date, including the Hygeia Hospital Group project in Nigeria and the MP Shah Hospital expansion and redevelopment project in Nairobi, Kenya. As well as social enterprises and NGOs, some private sector investors have seen the potential and invested in the African Healthcare sector. In 2015, a Malaysian private hospital chain owned by the US investment firm Columbia Pacific Management announced its intention to set up in Nairobi, while the largest investment in East African retail pharmacy in 2016 was the acquisition of Goodlife Pharmacy by a UK private equity firm, Leapfrog. Read More
May 2017 – Ethiopia’s Tedros wins WHO race, first African to get top job
Ethiopia’s Tedros Adhanom Ghebreyesus won the race to be the next head of the World Health Organisation (WHO) on Tuesday, becoming the first African to lead the Geneva-based United Nations agency. The former health minister and foreign minister, who vowed to make universal health care his priority, won over half the votes from 189 member states in the first round and prevailed in a third-round ballot against Britain’s David Nabarro. “It’s a victory day for Ethiopia and for Africa,” Ethiopia’s ambassador to the U.N. in Geneva Negash Kebret Botora said.
Tedros, as he is widely known, told health ministers at the WHO’s annual assembly after his election: “All roads lead to universal coverage. This will be my central priority. “At present, only about a half of the world’s people have access to health care without impoverishment. This needs to improve dramatically,” he added. Six candidates sought to take the helm at the WHO, which is tasked with combating disease outbreaks and chronic illnesses. The WHO said Tedros had led a “comprehensive reform effort” of Ethiopia’s health system, creating health centres and jobs. Read More
May 2017 – MP Shah Hospital eyes expansion with Sh1bn IFC funding
MP Shah Hospital is set to receive Sh1 billion ($10 million) from the International Finance Corporation (IFC) to boost its ongoing expansion to meet growing demand. The Parklands-based hospital, Nairobi, will use the funds from the World Bank’s private lending arm to build a six-storey building to house new oncology and physiotherapy clinics and surgical wards. MP Shah’s chief executive officer Anup Das said the new wing will be fully operational by the end of next year. Its 96 new beds will raise the hospital’s total capacity to 306. Read More
May 2017 – Aster DM CEO: We’ll IPO before Oct 2018 – and we’re looking at Africa
In an interview in Dubai, she said the group had restarted the IPO process and that she believes investor sentiment regarding the Gulf was improving. “It’s about finding when sentiments are fairly stable,” she explained. Kotak Mahindra Capital will be lead manager of the issue, which also involves Bank of America Corp., Goldman Sachs Group Inc., Edelweiss Financial Services Ltd., ICICI Securities Ltd., JM Financial Ltd and SBI Capital Markets. Indian private equity backers True North and Olympus Capital Asia Investments are expected to sell part of their stake. Moopen also announced that Aster is looking to enter Africa where it ‘has a small team there just looking at opportunities’, and named Nigeria, Kenya and Ethiopia specifically. She claims the group already has some brand presence on the continent due to the “fairly robust” flow of patients from Africa to its hospitals in India, but a joint-venture would be the ideal structure should it invest. Read More