Africa Embraces the Fourth Industrial Revolution in Healthcare
Africa is witnessing a rapid transformation in its healthcare sector, fueled by the adoption of emerging technologies. This ‘health tech’ revolution is attracting substantial investment and driving innovation, promising to improve healthcare delivery across the continent.
From 2020 to 2023, the sector attracted $550 million in investments, fostering the growth of health tech ecosystems across the continent. A notable $21 million investment in 2023, the largest ever for a woman-led African health tech company, highlights a 2,000% increase in funding for women-led startups between 2022 and 2023. Currently, nearly 350 startups operate within the digital health supply chain industry across 27 African countries, contributing to efforts to monitor 98 million vaccines and 72 million other critical health products, reducing waste and controlling costs. These figures are indicative of Africa’s commitment to integrating Fourth Industrial Revolution (4IR) technologies to enhance affordability, accessibility, granularity, and the quality of healthcare.
According to World Future Health Africa, digital tools and innovative solutions could reduce patient healthcare costs by 19%, reduce medication errors by 55%, and boost operational efficiency by 30%. Moreover, the application of Artificial Intelligence (AI) alone could potentially save 1 million African lives by 2030, and remote solutions offer the potential to reach over 700 million Africans.
Key Trends and Challenges in African Healthcare
Over the past half-century, Africa has made considerable strides in healthcare, including reduced under-five mortality rates, a lower burden of communicable diseases, and an increase in the number of hospital beds, doctors, and nurses. Life expectancy across the continent has also grown faster than in any other region, increasing by an average of 10 years per person between 2000 and 2019. North Africa has shown the most progress, with countries like Algeria, Mauritius, Morocco, Tunisia, and Cabo Verde now boasting an average life expectancy above the global average.
Despite these improvements, several challenges persist, causing impediments to the development of a healthy, resilient, and innovative healthcare industry. Human capital shortages, inadequate physical infrastructure, lack of financing, and limited disease detection capabilities remain significant hurdles.
Emerging Technologies Addressing Africa’s Healthcare Challenges
Advanced technologies are being deployed to overcome these challenges, and with supportive policies, can reshape the sector.
Addressing Human Capital Shortages
One of the most pressing issues in African healthcare is the shortage of medical professionals. The continent faces a ratio of one doctor for every 3,000 patients, a third of the WHO-recommended ratio, and a projected deficit of 4.3 million doctors by 2035. This shortage is made more severe by the fact that Africa is home to 25% of the global disease burden, but just 3% of the world’s healthcare workforce. The financial losses resulting from the emigration of trained physicians to high-income countries have also been substantial.
Emerging technologies like the Internet of Things (IoT) and cloud computing offer new avenues for training medical professionals and extending healthcare access to more patients. With high rates of mobile phone penetration in Sub-Saharan Africa, (44% in 2023, compared to a mobile internet penetration rate of 27%, according to GSMA), the continent represents a prime market for technologies such as telemedicine and inventory management solutions. For example, companies like Zuri Health use SMS-based telehealth to reach patients without internet access, while mTRAC provides medicine inventory information via SMS, making it possible for rural populations in Uganda to find necessary medications.
Improving Physical Capital and Infrastructure with Technology
Physical infrastructure also poses challenges, including a low ratio of hospital beds to patients and inconsistent access to electricity in some hospitals. Emerging technologies such as 3D printing and drone technology can address some of these deficiencies and provide services in the meantime. Ultra Red Technologies, a Kenyan company, has been able to 3D print supplies such as face masks and ventilator components. Companies like Zipline and LifeBank use drones to deliver essential medical supplies, including blood and oxygen, to remote areas, bypassing transportation challenges. To reduce emergency response times, Flare, a Kenyan emergency response company, uses location-based data solutions, cutting response times by nearly 90%.
Fintech Solutions to Address Financing Gaps
Lack of financing, including low national budget allocations and limited private sector investment, hinders the growth of health SMEs and startups. Government financing of the health sector is still below the agreed-upon target of 15% of GDP, prompting out-of-pocket expenditures and reliance on donor support to fill the funding gap. Fintech, which is already a strong force on the continent, is being utilized to finance healthcare costs. Maisha Meds, an operations management software used by more than 1,500 pharmacies in Africa, uses mobile money to lower drug costs for patients through digital reimbursement. New fintech companies like MicroEnsure, Jamii Africa, and M-Tiba demonstrate how this technology can bridge financing gaps.
Enhancing Disease Detection with AI and Biotechnology
Limited disease detection capabilities have left Africa less prepared to prevent the emergence and spread of pathogens. AI, machine learning, big data, and blockchain offer new opportunities to improve this. AI coupled with blockchain technology can help verify health documents, secure data storage systems, and hasten treatment strategies. Ilara Health, founded in Kenya, uses AI to detect respiratory illnesses from the sound of a cough. Biotechnology also presents another promising avenue, exemplified by its role in driving malaria research. Investing in biotechnology can lead to African-led discoveries and ensure Africans are better represented in the data that fuels genomic research. These technologies can enhance the effectiveness of diagnostic tools, mitigate the effects of doctor shortages, and accelerate health discoveries led by Africans.
Strategies for Effective Healthcare Delivery in the 4IR Era
Effective and strategic policy decisions are essential for realizing the potential of 4IR to transform African healthcare. African leaders should focus on unlocking capacity at the continental, regional, national, and local levels; strengthening African institutions such as the African CDC. At the continental level, a coordinated approach to the health system combining vertical and horizontal methodologies would help boost the benefits of the 4IR. African leaders should also engage the diaspora and friends of Africa to address the human capital shortage by utilizing digital technology platforms for e-learning. At the national level, dedicated government departments should implement 4IR tools, coordinate stakeholder collaboration, and encourage partnerships with private, public, philanthropic organizations to augment resources. Investing in health facility electrification, developing digital infrastructure, and striving for universal broadband access at the regional level will be key. Local banks should work with governments to gather information on health sector risks and develop equity-based financing mechanisms for SMEs. Agile governance and multi-stakeholder collaboration will be key at all levels to create a sustainable health sector leveraging advanced technologies.
