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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.
While the progress towards Universal Health Coverage may be slow, the continent looks poised to adopt localised solutions for very regional problems.
For a continent that accounts for 25% of the world disease burden, the healthcare space in Sub-Saharan Africa requires holistic approaches across several verticals to attract the required investment to tackle the growing challenges across the region. According to a report by the IFC, the private-sector arm of the World Bank, it is estimated that by 2022, Africa will need US$25 billion - US$30 billion in investment in physical healthcare assets alone, including hospitals and clinics. Analysis by Frost & Sullivan suggests that, generally, the growth of the Sub-Saharan Africa healthcare market for 2018-2019 will be hampered by the slow down in economic growth across the continent (an average of between 4% and 6%). While this has an effect in multiple areas, this has seen smartphone sales growth reduce from double to single digits since 2016 and will have a direct effect on mHealth.
Africa’s population is growing rapidly. Over the past 20 years, it has increased annually by 2.5% and is expected to rise to 2.4 billion by 2050. Africa also bears 25% of the global disease burden and is served by merely 2% of the world’s healthcare workforce. As the population booms, there will be an increasing need for high quality, accessible healthcare services to achieve universal health coverage (UHC), where all people will have the health services they need without facing financial hardship. The target to achieve UHC by the year 2030 was set out in Sustainable Development Goal (SDG) 3 and provides a goal for the continent to work toward.
Africa Health is an essential platform to conduct healthcare business in the continent – attracted over 10,500 attendees from all over the globe to meet with 560 exhibiting companies in 2018. Our first-class exhibition, combined with high-quality accredited medical conferences, has continued to grow and bring investment and new technologies into the Sub-Saharan Africa healthcare community.