NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, March 18, 2015

Mumbai-based pharmaceutical major Lupin Ltd.’s buyout of the remaining 40 percent equity stake in South Africa’s generic drug maker Pharma Dynamics at undisclosed amount last week shed light on other potential windfalls for Africa’s health-care investors.

According to the World Health Organization, sub-Sahara Africa accounts for nearly 12 percent of the world population, yet bears over a quarters of the global disease burden.

With improving economic activity and a bulging middle class in the region the demand for better health care by a youthful populace has created a ripe market for health sector investors. In many African countries, health is also grossly underfunded by the government.