Africa’s healthcare landscape is undergoing a transformation driven by digital health, medtech, and biotech innovations. With a rapidly growing population, increasing urbanization, and rising demand for better healthcare solutions, medtech and healthtech in Africa present a significant investment opportunity. However, challenges such as infrastructure gaps, regulatory complexity, and access to funding remain.
During a panel at LSI USA ‘24, Kwame Ulmer, Managing Partner at MedTech Impact Partners, sat down with Sewu-Steve Tawia, Co-Founder & Managing Partner of Jaza Rift Ventures, to explore the realities of investing in Africa’s healthcare ecosystem. Their conversation shed light on the continent’s vast potential, the hurdles to overcome, and the strategies that can drive innovation and investment success.
Why Invest in Medtech and Healthtech in Africa?
Africa’s healthcare market is poised for exponential growth. The population is expected to reach 2.5 billion by 2050, and urbanization is rising, with 50% of people already living in urban or peri-urban areas. These demographic shifts, combined with digital advancements, are creating new opportunities for medtech and healthtech in Africa.
Tawia, who leads Jaza Rift Ventures—a $50 million fund targeting early-stage investments in medtech, biotech, and digital health solutions—highlighted the scale of the opportunity:
“Africa has a $66 billion annual healthcare financing gap. We can’t solve it with infrastructure alone. Technology—digital health, medtech, and biotech—offers a unique opportunity to bridge this gap and leapfrog traditional healthcare models.”
Despite this potential, medtech venture capital investment in African healthcare has been relatively small, averaging around $180 million per year over the last five years. Compared to the $2.4 billion in total VC funding across all sectors in Africa in 2023, healthcare remains an underfunded but high-growth opportunity.
Key Markets for Medtech and Healthtech in Africa
Not all African countries are at the same stage of healthcare innovation. Tawia emphasized that regulatory readiness, private-public collaboration, and local innovation ecosystems play a crucial role in determining where investors should focus.
Top Markets by Sector:
- Medtech: South Africa, Nigeria, Tunisia
- Biotech: South Africa, Egypt, Ghana, Tunisia
- Digital Health: Kenya, Ghana, South Africa
South Africa leads in medical device and biotech development thanks to a well-established regulatory framework and investment ecosystem. Kenya and Ghana are emerging as digital health hubs, leveraging mobile technology to improve access to care.
“It’s important to remember that Africa isn’t one country—it’s 54 different countries,” Tawia reminded the audience. “Each has its own strengths and challenges, so investors need to take a localized approach.”
Infrastructure and Regulatory Challenges
The Role of Public-Private Partnerships
One of the most significant barriers to scaling healthtech and medtech innovation in Africa is infrastructure. Many regions lack reliable electricity and data connectivity, which impacts everything from cold storage for vaccines to remote diagnostics.
Tawia shared an example from his previous work in renewable energy:
“We installed solar panels for food preservation in refugee camps, only to find they were also being used to store breast milk and vaccines. That’s when we realized that energy and healthcare are deeply interconnected.”
In response, Jaza Rift Ventures is working on a model where community health workers are also micro-entrepreneurs—selling solar panels, inverters, and data services to support healthcare in off-grid areas.
Regulatory Hurdles and Market Entry Strategies
African nations vary widely in their regulatory approaches to medtech and healthtech. Unlike the United States or Europe, most African countries do not have dedicated medical device regulatory bodies. Instead, approval often falls under pharmacy boards or food and drug authorities.
Tawia explained a common market entry strategy:
“Most startups start with local regulatory approval, then pursue CE mark or FDA approval. Once they have an international certification, scaling across Africa becomes much easier.”
For example, Neopenda, a neonatal monitoring company, obtained FDA approval to commercialize in the United States while also scaling across African markets.
The Role of Strategic Investors in African Healthcare Innovation
Multinational corporations are increasingly entering Africa through medtech partnerships with local startups. Japanese and U.S. firms are investing in African healthtech through funds and accelerators, similar to how Stanford Biodesign has operated in the United States.
“Many corporates are now taking a structured approach—partnering with funds like ours to de-risk their investments,” said Tawia. “This allows them to explore the African market while leveraging local expertise.”
The most successful models for investment and expansion include:
- Joint ventures (JVs) with established African companies
- Corporate VC investments in healthtech startups
- Technology transfer partnerships to adapt solutions for the African market
Scaling Medtech and Healthtech in Africa: A Call to Action
For investors and innovators looking to engage with medtech and healthtech in Africa, Tawia offered a few key recommendations:
- Think beyond donors. “The donor model is shifting. Startups should focus on building commercially viable businesses rather than relying on grant funding indefinitely.”
- Leverage local expertise. “Success requires working with people who understand the local market dynamics. Co-investing with African funds can help mitigate risks.”
- Explore cross-border opportunities. “Africa-based healthtech startups can find strong secondary markets in the United States and Europe—particularly for cost-effective, high-impact innovations.”
- Attend Africa-focused healthcare investment forums. “We’re hosting the Transforming Africa Medtech Conference in Nairobi this August. It’s a great opportunity to meet entrepreneurs, investors, and policymakers shaping the future of African healthcare.”
Final Thoughts
The medtech and healthtech market in Africa is at an inflection point. With increasing urbanization, mobile technology adoption, and investor interest, the continent is poised for a healthcare revolution.
However, success will depend on strategic partnerships, infrastructure development, and regulatory alignment. As Tawia put it:
“Africa is not just a place for donor-funded projects. It’s a market full of opportunities for investors who are willing to think long-term and work with local partners to drive real change.”
For those looking to invest in Africa’s growing healthcare sector, now is the time to act. The next decade will define the future of medtech and healthtech in Africa—and those who engage early will have a front-row seat to the transformation.
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