This archive report was first published on 15 October 2021.
On October 15, 2021, the African healthcare sector was facing a significant crisis, with decades of under-investment and over-stretching of healthcare systems affecting service delivery and health outcomes.
According to Jayesh Saini, a private investor in the industry, there are two main areas that are interrelated and affect the health outcomes of any society: the availability of health facilities with requisite services and access to finances to pay for those services. The two must be available simultaneously for success to be achieved.
With governments having limited fiscal resources to distribute among competing demands, many are encouraging private players to invest in healthcare. The private sector is crucial to the growth of the health sector, from setting up health facilities to providing insurance coverage and helping governments develop policy proposals to make healthcare affordable.
Technological advancements and new complex health conditions have increased the demand for more resources. To address this, non-governmental organizations have set up facilities offering highly rebated services, often with the support of financiers who commit to supporting programs and procurement of required resources.
Pooling resources for the development of the industry is key to achieving Universal Health Coverage (UHC) that is affordable and of good quality. Governments must create a conducive environment for investors to invest in the health sector, considering the significant foreign debt burdens many countries face.
When environments are favorable, both local and foreign investors are more likely to invest in the industry. The COVID-19 outbreak highlighted the importance of the private sector in providing relief, with various bodies coming on board to assist, including non-health sectors.
Private investors are entering regions that governments have not reached, ensuring disadvantaged members of society have access to health services through the construction of health facilities or programs supporting payment for services.
According to Jayesh Saini, increased involvement of the private sector in healthcare will lead to increased access to capital, boosting significant growth in the sector in areas of intervention. This will also result in increased revenue flow for governments, alleviating human resource shortages, and creating employment opportunities.
