The coronavirus pandemic has showed us prominence in the gap in the healthcare services in Africa. Foreign investors have identified this to be a potential opportunity. For example Nigeria is lagging compared to other countries of the African continent in terms of expenditure and access to healthcare.
In Nigeria, public spending on healthcare is about 3.89 percent of its $495 billion GDP.
Hafeez Giwa, managing partner at HC Capital Properties, mentions that there is a very compelling opportunity for the development of world-class healthcare facilities across Africa, but especially Nigeria.
The Nigeria government has $254.6 million in-state credit facilities for healthcare ranging from pharmaceutical companies to product manufacturers to service providers since the onset of the pandemic. An additional 50 billion naira will be provided by the Bank of Industry. Bank of Industry is a Nigerian development finance institution.
It appears that 72 percent of household healthcare expenditure is out of pocket, compared to an average 35 percent in sub-Saharan Africa in which only about 5 percent of healthcare is covered by insurance.
Overall, this has created a compelling opportunity to develop the sophisticated healthcare facilities in Africa, especially in Nigeria. Investments have already been made by HC Capital Properties for healthcare assets in the country.
Obligatory health insurance for employees could see insurance costs lowered and the percentage of healthcare costs covered increase between 20 percent and 30 percent by 2030, posing as a new trend.