Frost: Increased Funding, Expansion Initiatives Drive Africa's Demand for Medical Devices
December 19, 2007 // Published as a news service by IHS
| |
| Medical Device Documents |
IHS medical device standards collections contain EU Directives and Harmonized Standards from the Official Journal of the European Union.
Complete this form for a free quote. |
|
| |
An improving legal framework and increased funding for the health care industry drive the medical devices market in sub-Saharan Africa, according to Frost & Sullivan.
The market provides significant potential for companies that effectively establish sound relationships with key participants in the market and provide services oriented toward the development of the health care infrastructure.
Recent analysis from Frost & Sullivan of the sub-Saharan African medical devices market found the markets in Kenya, Nigeria, Tanzania and Zambia earned revenues of $1.09 billion in 2006, with estimates to reach $1.53 billion in 2012.
This revenue growth will come from greater funding and the expansion of health care services in both the public and private sectors.
"Increased donor funding, government health care expansion initiatives and a uniquely high burden of disease in the sub-Saharan African region is driving demand for medical devices - both consumables and capital equipment," said Frost & Sullivan analyst Tiwonge Mkandawire.
"Despite significant challenges and restraints in the market, the region provides considerable potential for medical device companies to exploit."
Analysts said economic growth in Kenya, Nigeria, Tanzania and Zambia, coupled with concerted efforts by governments to enhance the legal framework for public procurement practices and control of medical devices on the market, are further boosting the attractiveness for product placement in the region.
Despite this promising scenario, challenges remain. Most countries in sub-Saharan Africa are plagued with substantial numbers of sub-standard, low-cost medical devices. Analysts said there is also a lack of transparency in procedures to select suppliers of medical products. The market is poorly understood, presenting incoming multinational companies with a daunting task in developing effective market penetration strategies.
"With increasing patient awareness and economic growth in the region, high quality products with good after-sales services are increasingly being sought by hospitals," said Mkandawire. "This is supported by efforts from governments to curb the presence of sub-standard products on the market through the implementation of regulatory control."
Due to the emphasis by market participants on long-standing relationships, it is imperative for medical device companies to place their products on the market early in order to capitalize on available growth opportunities. Analysts said with the complexity and lack of transparency of procurement systems, a local presence coupled with suitable value-added services will be paramount in market share development.
Source: Frost & Sullivan.