Export Opportunities for Medical Devices in Africa
Govt.of Guj.-AMA Centre of International Trade
The global medical device
market is consistently shifting to adopt new treatment, budgets and increase
Medical Device & Equipment
sector is the next sunrise sector in India, which has high growth potential.
The global medical device market is consistently shifting to adopt new
treatment, budgets and increase in demands.
With close to one billion people and a GDP of
approximately $1.7 Trillion, Africa presents a sizeable investment opportunity.
Today, 26 of Africa’s 54 countries have achieved middle-income status. Africa
has a larger portion of its population entering the workforce than any other
region in the world. There are 720 million African mobile users, more than in
Europe or North America. Five of the 12 fast est-growing economies in the world
are in Africa.
At the country-level, however, the story is less
enticing. If one considers that 3 countries (South Africa, Nigeria and Egypt)
account for over half of Africa’s economic activity, it is quite clear that the
remaining 51 countries suffer from a lack of scale. To address these challenges,
African countries have united together to establish Regional Economic
Communities (RECs). These RECs aim to boost regional integration and economic
development and, thereby, improve the profile and competitiveness of its member
nations. The most prominent RECs in Africa include: Southern African Development
Community (SADC), Economic Community of West African States (ECOWAS), Common
Market for Eastern and Southern Africa (COMESA), and East African Community (EAC).
African countries have united together to establish
Regional Economic Communities (RECs). These RECs aim to boost regional
integration and economic development and, thereby, improve the profile and
competitiveness of its member nations.
With the signing of African Continental Free Trade
Area by 44 out of 54 countries, within 2-3 years, this will become a single
The Africa Medical Devices Market is growing with a
steady pace; mainly due to the rapidly growing middle-income group, increasing
healthcare expenditure, increasing number of medical tourists, proliferation of
hospitals, government programs and support, and increasing incidence of life
style diseases. Moreover, rising economic growth also drive the market in this
region. We expect the Africa Medical Devices Market to reach around $ 7069.61
million by 2025 from $ 4900 million in 2017, by the end of the forecast period
at a CAGR of 6.3 %. However, the major markets are in the mid-income countries
such as South Africa, Kenya, Nigeria, Egypt and Morocco. Economies of countries
like Ethiopia, Ghana and Ivory Coast are rapidly expanding to reach middle
The market of medical devices is growing rapidly in
Africa region owing to upgrade of hospitals, introduction of health insurance
policy, and rapidly growing middle-income group. Government is focussing more to
improve the life of their citizens, thus they are more focusing on the
establishment of best hospitals in the region. There is a large base of NGO
hospitals and new private hospitals are opening at a rapid rate. Ethiopia alone
will open 50 new hospitals. These are the factors which are fuelling the growth
of the market of medical devices with the significant rates in this region.
However there exists huge barriers too. The most
formidable barrier is the low per capita income and the poor connectivity and
infrastructure of Africa. Although Africa has a large middle-class consumer base
there exists the reality that approx. 60% of population survives on less than
USD 2 a day. Thus, two things should be noted.
African medical devices market is very price
sensitive and opportunities lie at the lower end with devices with lower cost
and features to dominate the segment. This presents a huge opportunity for
Indian companies with frugal engineering skills.
Traditionally, our exporters have concentrated their
efforts on the larger markets such as South Africa, Egypt and Nigeria. African
Continental Free Trade Area under implementation will create larger markets. To
get entrenched in the African market, it is very important that products must be
visible to the decision makers and influencers on a regular basis through
regional trade fairs, both on East & West coasts. At present, our Export
Promotion bodies can only cover a fraction of the markets. Exporters, especially
SME should join hands and cooperatively book smaller stalls which can be manned
by one or two representatives on behalf of all exhibitors. They can also
distribute composite directories of their products to the visitors which can act
a reminder when they go to their work places. In this manner, small exhibitors
can participate in more exhibitions and create greater visibility for their