Over the years, we’ve worked across many sectors, with healthcare being the exception. Recently, however, we embarked on our first engagement with a private healthcare company and are preparing to launch our first fundraising effort in this space.
With this in mind, it’s an opportune moment to assess the state of healthcare across the continent. The healthcare industry comprises many diverse segments, each with its own complexities, opportunities, and challenges. Here are our perspectives on a few key areas:
Pharmaceutical Sector: Pragmatic Approaches to Local Manufacturing
The debate around local pharmaceutical production in Africa requires a nuanced understanding. While local production is often touted, it’s not always feasible. Transporting medicine is straightforward and cost-effective, with established supply chains and low cost production in countries like India. Although producing certain products, such as liquid medicines, locally may make sense, manufacturing pills and other products domestically would often require importing all the ingredients, just to complete the production process here.
Is this solving a problem or gaining efficiency, or chasing vanity?
Digital Health Revolution: Telemedicine as a Game-Changer
As the infographic illustrates, many countries face critically low healthcare access. Addressing this gap will require significant time and investment, given constraints in human capital and infrastructure. This challenge has driven many healthcare startups to bet on remote healthcare services as a pivotal part of the industry’s future.
Observed Startup Ecosystem Solutions:
- Remote healthcare services
- Digital health platforms
- AI-driven diagnostics
- Mobile health applications
Healthcare Services: Meeting Quality Care Demands
The high spending on medical tourism highlights both the need for quality healthcare services on the continent and the willingness of individuals to pay for care. Quality clinics, hospitals, and other healthcare providers could meet this demand and potentially reduce the need for patients to seek care abroad.
Investment Implications
The sector presents various entry points for investors:
- Infrastructure development
- Digital health solutions
- Specialized medical facilities
- Training and capacity building
- Supply chain optimization
If you are a healthcare investor, we would love to hear from you about your mandate and where you see the most potential in the sector!
