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2020 | OriginalPaper | Chapter

5. Healthcare System and Pharmaceutical Market in Sub-Saharan Africa

Author : Philipp von Carlowitz

Published in: Success in the Bottom of the Pyramid Market in Africa

Publisher: Springer International Publishing

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Abstract

Healthcare coverage is one of the 17 Sustainable Development Goals (SDGs) of the Agenda 2030 of the United Nations. The situation in SSA is bleak: There is a lack of coverage and quality of service and finance. A key part of a functioning (basic) healthcare provision is the availability of medicines. Local production and distribution are the main challenges in the pharmaceutical industry making medicine availability difficult. The majority of drug consumption via out-of-pocket spending is found in the BoP population, especially in the rural areas. This chapter will examine the situation in terms of healthcare coverage, the role of out-of-pocket-spending, the situation of the local pharmaceutical industry and the role of BoP spending. It finds that gaps are pertinent in the existing systems and provisions. This has impact on the business model approach.

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previous chapter Political and Macroeconomic Situation in Sub-Saharan Africa
next chapter Pharmaceutical MNCs Addressing the BoP Market: Empirical Analysis
Footnotes
1
The Afrobarometer surveys eight SSA countries on a regular basis. They are: Benin, Côte d’Ivoire, Kenya, Malawi, Mali, Uganda, Zambia, Zimbabwe. In each country more than 1000 citizens are interviewed.
 
2
This decline in out-of-pocket spending mainly occurred in smaller countries and was, on a regional level, overcompensated by high out-of-pocket spending increases in large countries such as Nigeria.
 
3
This includes private insurance, enterprise and NGO-based insurance schemes, and voluntary insurance models.
 
4
M-Tiba is the first of a series of similar schemes in Sub-Saharan African countries offering similar healthcare schemes all based on the Pharma Access Foundation concept (https://​www.​pharmaccess.​org/​) run by CarePay, a legal entity founded in Kenya.
 
5
To avoid confusion, the market size in Table 5.3 refers to only countries in Sub-Saharan Africa. North Africa makes up a large proportion of any industry market in Africa.
 
6
They calculate the factor according to following formula: factor = local price/international reference price.
 
7
Note that this refers to ‘household spending’ which corresponds only to the out-of-pocket healthcare spending and does not reflect total healthcare spending in the country.
 
8
More current data is not available.
 
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Metadata
Title
Healthcare System and Pharmaceutical Market in Sub-Saharan Africa
Author
Philipp von Carlowitz
Copyright Year
2020
Book
Success in the Bottom of the Pyramid Market in Africa

Print ISBN: 978-3-030-59067-3

Electronic ISBN: 978-3-030-59068-0

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-59068-0_5