Three Recommendations to Foster Development in Africa’s Health Markets
Monday, April 14, 2014
In the beginning of March, we presented at the East African Healthcare Federation Conference in Nairobi, which this year focused on business opportunities in East Africa’s healthcare markets. In his speech, KPMG’s head of healthcare in Africa, Sven Byl, cautioned the audience: “If you don’t jump on board now, you will probably miss the train.” The train he was referring to is East Africa’s growing health sector market, but anyone who looks at the numbers can see that a “train” metaphor dramatically underestimates the magnitude of the approaching opportunity. In fact, “the rocket will launch into space without you,” might be more accurately evocative.
The huge room for increases in healthcare spending in African economies, coupled with the growth of their middle classes and booming populations, point to explosive potential. It is predicted that health care spending will assume an ever-expanding percentage of the growing GDP of African economies. In 2009, average per capita health spending in Africa was $83 — less than 2 percent of the $4,600 spent per person in high-income countries. As per capita incomes increase, this gap will inevitably shrink.