Investing in healthy African communities is key to growth and prosperity

There is no doubt that Africa has the potential to be a prosperous continent, filled with thriving communities. Achieving that potential means bringing together the continent’s natural and renewable resources with a growing, youthful, and increasingly well-connected population alive with innovation. But it also means getting essential services right. One area that deserves particular attention is healthcare. 

Healthcare across the continent remains deeply divided, with a privileged few able to access private services (or even travel internationally in some cases). At the same time, the majority have little choice but to turn to constrained public healthcare services. Even the continent’s biggest and most industrialised economies struggle with this dichotomy. 

Take South Africa, for example. In recent weeks, it’s emerged that hundreds of qualified doctors are sitting at home unemployed. There have also been many instances of health departments, hospitals and other healthcare facilities falling into disarray due to dysfunctional management. Similar issues can be found across the continent, with some healthcare systems on the verge of collapse. Research Gate also  conducted a study that shows significant disparities between the kind of healthcare available to people in cities versus rural inhabitants.  

There is hope, however. By backing innovators in the sector, investors can help ensure that ordinary Africans can get the healthcare they need. In doing so, those investors can also play an important role in driving the kind of economic growth and development that will benefit them in the long term.       

No shortage of innovators to back 

It’s worth pointing out that there is no shortage of innovators across Africa working on the many healthcare issues faced by people across the continent. We should know, because we’ve had the chance to back a few of them. 

Make no mistake, the scale of the challenge they’re trying to address is massive. A 2021 report, by the Africa Health Agenda International Conference, found that just over half of Africa’s inhabitants have access to the healthcare they need. The report also found that the quality of healthcare services is generally poor and the family planning needs of half of the continent’s women and girls aren’t being met. 

Nonetheless, many innovators have taken an entrepreneurial approach to overcoming those challenges. Take RH Bophelo, for example. Headquartered in Johannesburg, it is a healthcare investment holding company investing in the healthcare sector with a focus on low- and middle-income earners.

It seeks to support the healthcare sector and reduce the burden on public services by providing affordable private healthcare to the underserved population. Since its founding, it has invested in several healthcare providers and facilities, allowing them to continue providing high-quality healthcare at affordable prices. 

The Ruai Family Hospital (RFH), meanwhile, is having a positive impact on the healthcare space in the Kenyan capital of Nairobi. Kenya faces enormous healthcare challenges, specifically in populated areas of Nairobi where there are limited or no full-service healthcare providers. 

Cancer ranks as the third highest cause of death and the second most prevalent noncommunicable disease following cardiovascular diseases in Kenya. And, according to the RFH, the occurrence of cancer is on the rise with reported figures of 47 887 new cases in 2018 and 42 116 new cases in 2020. It aims to address that by improving access to affordable oncology healthcare for the lower and middle-income residents of Nairobi.

While the work being done by these companies may seem fairly straightforward, the fact that they’re able to provide much-needed services to ordinary people at affordable prices deserves to be celebrated. Beyond that, the work they’re doing and their expansions demonstrate the business case for investing in African healthcare. 

A sector that fuels growth 

Anyone who invests in African healthcare isn’t just investing in saving and improving lives either. Healthcare investment comes with immense societal benefits. With access to quality healthcare, more of the workforce can work more of the time. That’s not only because they’ll recover faster from illnesses but also because they’d need to take less time off to queue at hospitals and clinics for appointments and medicine. 

Additionally, investments in the sector can help slow the brain drain of highly qualified healthcare professionals, further contributing to economic growth. After all, if a country has trained someone, they want that person to stay and spend their salary in that country. The healthcare sector is also a job creator, a source of infrastructure creation, and a hotbed of innovation and research. Unsurprisingly, research has shown a strong link between investments in healthcare and economic improvements. 

Given that the African healthcare sector is, according to Devex, set to be worth US$259 billion and will reportedly present 14% of health and wellbeing business opportunities in that time, it should be clear that there is immense growth potential for investors to capitalise on. 

Real impact, real returns

For investors who are interested in making a real impact as well as returns, the opportunities are particularly significant. Our investment in RH Bophelo, for instance, has helped the organisation create more than 1 100 jobs, increase the number of available hospital beds by 520, and facilitate more than 125 000 patient consultations. 

Imagine what thousands of investments in African healthcare providers, innovators, and entrepreneurs could do. How many lives could be saved? How many jobs could be created? And how much economic growth could be unleashed? If we want to see Africa reach its full, untapped potential, we need to find out. 

Picture Cred: New African Magazine