Balancing social impact and profitability in healthcare entrepreneurship in Africa.

Hamza Asumah, MD, MBA

Over the past decade, there has been a growing trend of social impact healthcare projects in Africa. These projects are typically focused on addressing the healthcare needs of underserved communities through innovative and sustainable solutions.

One of the most common types of social impact healthcare projects in Africa is the use of mobile health (mHealth) technologies to improve access to healthcare services. mHealth solutions, such as mobile health applications and telemedicine platforms, have been used to provide medical consultations, deliver health education, and monitor patient health remotely.

Another trend in social impact healthcare projects in Africa is the use of public-private partnerships (PPPs) to improve healthcare service delivery. PPPs involve collaboration between government entities, private sector organizations, and non-profit organizations to address healthcare challenges and improve health outcomes.

There has also been a growing trend of social impact healthcare projects focused on specific healthcare challenges, such as maternal and child health, infectious disease control, and non-communicable disease prevention and management.

Photo By Venture Beat

Overall, the trend of social impact healthcare projects in Africa is driven by a recognition of the urgent need to address the significant healthcare challenges facing the continent. These projects are typically designed to be sustainable, scalable, and inclusive, and are often implemented through partnerships between different stakeholders, including governments, non-profits, and private sector organizations.

There is limited publicly available data on how social impact has affected profitability in healthcare businesses in Africa. However, there are some studies and reports that provide insights into the relationship between social impact and profitability in the healthcare sector in Africa.

Photo By Startup Nation

A 2019 study by the International Finance Corporation (IFC) and the Global Impact Investing Network (GIIN) found that impact-driven healthcare businesses in emerging markets, including Africa, can be profitable and sustainable. The study analyzed the financial and social performance of 48 healthcare businesses that received impact investment funding between 2006 and 2015. The study found that these businesses achieved an average financial return of 13.5%, indicating that social impact and profitability can coexist.

Similarly, a 2020 report by the African Management Institute (AMI) found that small and medium-sized enterprises (SMEs) in Africa that prioritize social impact are more likely to achieve long-term profitability. The report analyzed the performance of over 1,000 SMEs across Africa and found that those that prioritized social impact had higher revenues, profits, and customer loyalty compared to those that did not prioritize social impact.

Furthermore, a 2021 report by the African Development Bank (AfDB) found that healthcare businesses that focus on social impact in Africa can attract significant investment and generate significant economic and social benefits. The report highlights several successful healthcare businesses in Africa that have achieved both social impact and profitability, such as the South African healthcare provider Life Healthcare and the Nigerian mobile health platform Kangpe.

Photo By HBS Online

Healthcare entrepreneurship in Africa presents a unique set of challenges and opportunities. On one hand, the lack of access to quality healthcare services in many African countries provides a pressing need for innovative solutions. On the other hand, healthcare entrepreneurs must balance the social impact of their work with the need for profitability to ensure the sustainability of their ventures.

In this blog post, we will explore some of the key considerations for healthcare entrepreneurs in Africa seeking to balance social impact and profitability.

1. Identify the most pressing healthcare needs

The first step in balancing social impact and profitability in healthcare entrepreneurship in Africa is to identify the most pressing healthcare needs in the region. This requires a deep understanding of the local healthcare landscape, including the prevalence of various diseases, the availability and quality of healthcare services, and the socioeconomic factors that impact healthcare access.

Healthcare entrepreneurs must also consider the unique cultural and social contexts of the communities they serve, as these factors can have a significant impact on healthcare outcomes.

2. Develop innovative solutions

Once the most pressing healthcare needs have been identified, healthcare entrepreneurs must develop innovative solutions to address them. This may involve leveraging technology, such as telemedicine or mobile health applications, to increase access to healthcare services.

However, it is important to ensure that these solutions are culturally appropriate and accessible to the communities they serve. This may require partnerships with local organizations or working closely with community leaders to ensure that the solutions meet the needs of the community.

3. Consider the long-term sustainability of the venture

While social impact is an important goal for healthcare entrepreneurship in Africa, it is also important to ensure the long-term sustainability of the venture. This requires a focus on profitability, as well as a deep understanding of the local market and regulatory environment.

Healthcare entrepreneurs must also consider the scalability of their solutions, as well as the potential for partnerships with other organizations to increase their impact.

4. Seek out funding and support

Healthcare entrepreneurship in Africa often requires significant funding and support to be successful. Healthcare entrepreneurs should consider a range of funding sources, including grants, impact investors, and partnerships with larger organizations.

It is also important to seek out support from local and international organizations, including government agencies, non-profits, and academic institutions. These organizations can provide valuable resources and expertise to support the development and implementation of healthcare solutions.

5. Measure and communicate impact

Finally, healthcare entrepreneurs must measure and communicate the impact of their work to stakeholders. This includes tracking key metrics, such as patient outcomes and cost savings, and communicating these results to investors, partners, and the broader community.

Photo By HBS Online

By demonstrating the social impact of their work, healthcare entrepreneurs can build support for their ventures and attract additional funding and resources.

In conclusion, healthcare entrepreneurship in Africa presents a unique set of challenges and opportunities. By identifying the most pressing healthcare needs, developing innovative solutions, focusing on long-term sustainability, seeking out funding and support, and measuring and communicating impact, healthcare entrepreneurs can balance social impact and profitability and make a meaningful difference in the lives of people across the continent.

Please leave your comment below.