Business opportunity
Market area:
Industry:

Innovative solutions for the South African health care sector

30.11.2017
The South African health care sector continues to exhibit significant growth rates and provide lucrative business opportunities. Demographic factors and the disease environment are putting increasing pressure on public health care provision, while the high-quality private operators are facing higher costs.

The government is taking action to enhance delivery of public health services, and has earmarked €3bn for health research and innovation. In this regard, public-private partnerships (PPPs) are being encouraged to a greater extent than before. There appears to be an immediate need for integrated digital systems and management solutions that improve efficiency. At the same time, the private medical insurance companies are seeking to reduce costs and incentivise their clients to adapt a healthier lifestyle.


The dual market for health services

The private sector offers services of world-class quality. Around 17% of South African are covered by medical insurance, which gives them access to private health services. On aggregate, the private health expenditure (€12bn) has already surpassed spending on public health (€11,5bn). Studies show that the private expenditure is projected to grow at a rate of 8% during 2018-2020.

On the other hand, the vast majority of South Africans rely on public health services, which are characterised by an inefficient use of resources. Due to rapid population growth, public hospitals and clinics are struggling to provide adequate care for their clients. Currently, the biggest hospitals are already serving large volumes, up to 41 000 walk-ins per day. Customer satisfaction rates are low, and because of faulty practices, chronic conditions are often being poorly treated.


Potential offerings

Based on interaction with local stakeholders, Finpro South Africa has identified an increasing demand for innovative health care solutions. In particular, there are opportunities in the following fields:

  • integration of data systems, smart medicine (e.g. biometric recognition, social security numbering system, medical records, chronic medicine distribution & packaging, management of medical grants)
  • diagnostic testing applications
  • technological solutions that facilitate a healthier lifestyle and record health data
  • disease management (especially diabetes, allergies)
  • training for health professionals (hospital management, post-basic training, degrees in nursing education)
  • cost-reducing solutions (facility management, development of best practices, integration of organisational levels, verification of efficiency)
  • nutritional products, including healthy snacks and anti-inflammatory foods

With their pioneering technical expertise, Finnish companies are in a good position to tap into this potential. Further, South Africa provides a promising gateway to the growing markets elsewhere in Sub-Saharan Africa, where rapid rates of population growth and urbanisation will induce demand for similar services in future.

Next steps

To grasp this opportunity, we invite interested Finnish companies to join the South African Biotech Round Table on 5 December 2017. During the time, a South African delegation of 15 start-up companies from health, diagnostics and nutrition sectors are coming to visit Finland.

 
Ms Mendes, Senior Advisor at Finpro South Africa is happy to discuss the opportunities in further detail with individual companies during her visit to Helsinki on 12-15 December 2017.

For further information about the opportunity, please contact:
Inês Cerqueira Mendes
Senior Advisor
ines.mendes@finpro.fi

 

Average (0 Votes)
No comments yet. Be the first.