Hamza Asumah, MD, MBA
Africa, the world’s second-largest and second-most populous continent, stands at a unique position demographically. It is home to the world’s youngest population, with more than 60% of its population under the age of 25. By 2050, Africa’s youth population is expected to increase by nearly 50%, creating a significant “demographic dividend” (United Nations, 2019). This young and rapidly growing population presents unprecedented opportunities for healthcare entrepreneurs to address the evolving healthcare needs of the continent.
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The Growing Demand for Healthcare Services
With the increasing population comes a surge in demand for healthcare services. Non-communicable diseases (NCDs), such as heart disease, cancer, and diabetes, are on the rise in Africa, projected to cause 3.9 million deaths annually by 2020 (World Health Organization, 2018). Moreover, the continent continues to grapple with infectious diseases like HIV/AIDS, malaria, and more recently, the COVID-19 pandemic.
The combination of these factors, along with the ongoing need for maternal and child health services, creates a vast market for healthcare solutions. Entrepreneurs with innovative, affordable, and accessible healthcare solutions can tap into this growing demand and help address the healthcare challenges faced by African populations.
Digital Health Innovations
One key area for entrepreneurial exploration is digital health. Africa is experiencing a rapid growth in mobile technology adoption, with over 477 million mobile users, and this number is expected to grow to 614 million by 2025 (GSMA Intelligence, 2020). Mobile technology has the potential to revolutionize healthcare delivery through telemedicine, mobile health applications, health information systems, and more.
Startups like Helium Health, a Nigerian healthtech company, have successfully implemented electronic medical records systems that digitize patient records, streamline healthcare workflows, and improve patient care. Similarly, mPedigree, a Ghanaian startup, has utilized mobile technology to prevent drug counterfeiting and ensure the safety and authenticity of medications in the market. LifeBank, a Nigerian healthcare logistics company, has developed a digital platform to optimize the supply chain of blood and other essential medical products, ensuring timely delivery to hospitals and clinics.
These examples demonstrate how entrepreneurs can leverage digital platforms to improve access to healthcare services, enhance patient outcomes, and address healthcare challenges that arise due to geographical barriers, limited infrastructure, and resource constraints.
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Investment Opportunities
The healthcare sector in Africa presents attractive investment opportunities. According to a report by Partech Africa, in 2019, African tech startups raised a record-breaking $2.02 billion in equity funding, representing a 74% year-on-year growth. The health tech sector was among the top five verticals that attracted the most funding, signaling investor confidence in the potential of healthcare entrepreneurship in Africa.
Entrepreneurs can leverage investment and funding opportunities from various sources, including venture capitalists, impact investors, and development finance institutions like the African Development Bank. Programs such as the Johnson & Johnson Africa Innovation Challenge provide funding and mentorship for healthcare startups, aiding their growth, scalability, and impact.
Policy Environment and Partnerships
The African Union’s Agenda 2063 prioritizes healthcare as a critical area for development. Governments across the continent are increasingly recognizing the importance of public-private partnerships to improve healthcare delivery and address the complex challenges faced by their healthcare systems. Entrepreneurs can capitalize on this supportive policy environment to establish and scale their healthcare ventures. Partnerships with government agencies can provide critical resources and support, enabling entrepreneurs to pilot innovative solutions, optimize their business models, and scale their operations across different regions.
In addition to government support, partnerships with non-governmental organizations and international development agencies can also be fruitful. These organizations often have extensive networks and resources that can assist in implementing and scaling healthcare solutions. For example, the partnership between the Kenyan government and the global health organization PATH led to the successful implementation of the Afya Ziwani project, which improved access to quality healthcare services for over 100,000 people in Kenya’s Homa Bay County.
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Workforce Development and Training
Capitalizing on Africa’s demographic dividend also involves investing in the continent’s human capital. As the healthcare sector expands, there will be a growing need for skilled healthcare professionals and entrepreneurs. Initiatives that provide education, training, and mentorship in healthcare entrepreneurship can help equip young Africans with the skills and knowledge they need to pioneer and lead successful healthcare ventures.
Programs like the African Entrepreneurship Award offer mentorship and funding to African entrepreneurs, including those in the healthcare sector. Similarly, the Tony Elumelu Foundation’s Entrepreneurship Programme provides training, mentorship, and funding to African entrepreneurs, fostering the growth of entrepreneurship across the continent.
Entrepreneurial Challenges and the Way Forward
While the opportunities are abundant, it’s also essential to acknowledge the challenges faced by healthcare entrepreneurs in Africa. These include regulatory hurdles, limited access to capital, infrastructure constraints, and the need for more robust healthcare and technological education.
However, with the right support systems in place, these challenges can be addressed. Policymakers can play a crucial role by creating a conducive environment for healthcare innovation, including establishing clear regulatory guidelines, promoting healthcare entrepreneurship, and investing in digital infrastructure and education.
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The demographic dividend in Africa presents a golden opportunity for healthcare entrepreneurs. The combination of a growing demand for healthcare services, the digital revolution, increasing investment, and a supportive policy environment create an opportune moment for entrepreneurs to make a significant impact on healthcare in Africa. Through innovation, strategic partnerships, and a keen understanding of the unique healthcare needs of African populations, healthcare entrepreneurs can play a critical role in shaping the continent’s future, improving health outcomes, and contributing to sustainable development.
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Dr. Hamza Asumah 
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