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The African healthcare landscape with South Africa at its forefront is potentially poised for significant growth and transformation in 2023.
The ongoing digital revolution coupled with a focus on achieving universal health coverage positions the continent for a brighter healthcare future. Also, private sector expansion and the integration of emerging technologies such as AI, machine learning, and IoT will play a crucial role in driving innovation and improving patient outcomes.
Take a look at our trends report that discusses the state of the current African market.
In the wake of the global pandemic, the pharmaceutical and healthcare sectors across Africa, including South Africa – the continent's largest economy - are experiencing a positive transformation driven by digital advancements and a renewed focus on improving patient outcomes.
Research suggests that by embracing digital transformation, countries like Kenya, Nigeria, and South Africa have the potential to achieve up to 15% efficiency gains in total healthcare expenditures by 2030.
Take a look at our latest report discussing the healthcare transformation boom in SA.
Healthcare expenditure in South Africa is evenly distributed between the public and private sectors, although inequality persists in the quality of healthcare services.
Fitch Solutions expect the South African healthcare market to increase at a CAGR of 4.7% over five years from 2017 to reach a value of US$37 billion by 2022. They also expect a similar growth rate over the next decade to reach a value of US$47.1 billion by 2027.
The South Africa medical device market will register a 9.1% CAGR between 2017-2018 according to a recent Fitch Solutions report. This significant growth will raise the market to USD 1.27 bn by 2018.
A substantial portion of medical device and lab equipment exports are sent to other parts of Africa, with 12 African nations featuring in its top 20 export destinations last year.
South Africa currently runs a two-tiered healthcare system, comprising of the public and the smaller, rapidly -growing private sector. The country spent 9% of its GDP on healthcare in 2017, which is 4% higher than the WHO’s recommended spending for a country of its socioeconomic status. Despite this high expenditure, health outcomes are still trailing in comparison with similar middle-income countries, mostly due to the inequities between the public and private sectors.