Business a.m.
Nigeria is leading the way in healthtech innovation in Africa, with 29 percent of the top innovators focused on improving the efficiency of public health systems being based in the country, according to a report by Salient Advisory.
The market intelligence report which examines healthcare technology innovation across the continent, highlighted 24 innovative companies that are transforming the healthcare supply chain across Africa.
Funded by the Gates Foundation, the report titled “Leading Innovations Enabling Health Product Access in Africa”, uncovered that despite current macroeconomic challenges and declining investment in African technology ecosystems, a select group of 24 innovative African companies are establishing themselves as trailblazers in the health sector.
The 24 leading innovators featured are (in alphabetical order): Chefaa, DrugStoc, Field Inc, Figorr, Grinta, HealthPlus, Kasha, LifeBank, Maisha Meds, Meditect, mPedigree, MYDAWA, Pendulum, PharmaSecure, Remedial Health, RxAll, Sobrus, Sproxil, Talamus Health, VIA Global Health, Viebeg, Wingcopter, Yodawy and Zipline.
These 24 innovators have, on average, been in operation for a decade and have formed collaborative partnerships with over 100 manufacturers and 75 public health institutions, reaching around 50,000 providers (who serve hundreds of thousands of patients per day) and delivering health products to millions of consumers directly.
The report identified Kasha as a leading example, having secured Series B investment in 2022, which propelled the company to develop its health technology access platform and report annual revenues of more than $50 million in 2023, the highest revenue figure recorded by Salient’s research thus far.
The report further illustrates the prevalence of technology-driven order and inventory management services among the leading companies, with 13 out of the 24 innovators offering these services to healthcare institutions, including hospitals, clinics, pharmacies, and drug shops. These innovators operate in 30 countries, signaling their widespread impact.
Of the 24 featured innovations, four leading online pharmacies have amassed a customer base of nearly 10 million people, yielding a median annual revenue of almost $9 million. The report also showcases product protection and visibility, medical drone delivery, and data analytics as emerging categories for healthcare innovation.
The report underlines that while the leading innovators are poised to create a more significant impact, they require focused involvement from key stakeholders, such as governments, donors, industry, and global health institutions, to transform access to healthcare services for underserved populations and enhance the cost-effectiveness of care.
To leverage leading innovators’ models in driving increases in access, the report suggested that governments, industry, donors and global health agencies should; simplify regulatory pathways, explore innovators’ ability to generate cost- savings for health systems, pursue partnerships when the evidence is strong; and evolve contracting and payment systems to enable innovators to partner in healthcare delivery systems at larger scale.
Speaking on the launch of the report, Yomi Kazeem, engagement manager at Salient Advisory, commented: ‘’The findings underscore the remarkable resilience and growing impact of African supply chain innovators. Having tracked healthtech startups for many years, the emergence of a group of leading innovators is exciting to report. Local and global public health communities must increasingly recognize and leverage the innovators in developing reliable and resilient health supply chains.”
Ann Allen, senior programme officer at Gates Foundation, stated: “Technology-enabled innovations have the potential to help reverse long-running challenges in African health systems, while creating local jobs and strengthening local health markets.
“The report confirms innovators are increasingly positioned to deliver on this promise. However, there is more to be done as leveraging these innovations to truly transform cost-effective access for millions of unserved Africans will require concerted efforts from governments, industry and global health agencies alike.”
