Africa Healthcare Boom

The healthcare industry is set for huge growth across the world over the next coming years, particularly in Africa. The economic boom in many African countries has fuelled demand for improved healthcare. As governments try to meet demand and begin to implement universal health schemes, and the Africa sector undergoes “major policy, system and infrastructural changes”, investor opportunities are increasing tenfold. And as technology continues to develop within the region, the healthcare industry will only continue to expand. The expansion of Samsung Electronics into the South Africa healthcare sector is just one example.

There is no doubt that investors can expect strong returns. According to Valter Adao, Deloitte, “outlook for investments in the healthcare sector remains relatively robust compared to other sectors”. And although "global mergers and acquisition trends remain subdued due to the economic environment with a move towards smaller deal sizes, the healthcare sector bucked the trend somewhat in the second half of 2012 with a 4% increase in deal value". 


It is estimated that, by 2016, Sub-Saharan Africa’s healthcare market will rocket to $35 billion. Fedré Meiring, Associate 

Director of the Corporate Finance Division of Deloitte posits that:

“The healthcare sector appears to be well placed to take advantage of both the expected growth on the African continent and the

 relatively high proportion of global disease in Africa”.

According to the WHO,

 “The Sub-Saharan region alone accounts for 11% of the world's population and bears 24% of the global disease burden.”

One major effect of the boom on the Africa healthcare sectors was the rise in demand for private healthcare. The burgeoning middle classes can afford, and are willing to pay for better treatment. This is an incentive like never before. Often in partnerships with governments, the private sector is improving healthcare facilities, affordably.

Across the region, governments have implemented a number of promising reforms, restructuring their nations' health systems, in turn facilitating access to free universal healthcare.

Undeniably, however, in some countries, progress has been stunted by major economic and political challenges, poor infrastructure and a lack of suitably trained medical professionals. But reform is possible. Ethiopia has begun building an improved primary healthcare service and South Africa has launched the National Heath Insurance Pilot Project.

The Africa Healthcare Summit 2014, 20-21 February, being held in London, is the perfect platform to explore the latest investment opportunities within Africa's healthcare industry and discover the latest regulatory changes, technological advancements, innovations and techniques. Click here for further information.