Promoting affordable healthcare in Africa

The health burden in Africa is gradually opening up opportunities for investors in the medical sector. However, the high cost of access to healthcare remains a major barrier on the continent. CNBC Africa recently spoke to Njeri Njomo, a key player in the industry, to shed light on efforts to deepen penetration in the healthcare sector in Africa. Njomo highlighted the current landscape of healthcare insurance in Kenya, where only a small percentage of Kenyans have access to insurance, primarily through their employment or organizations that provide benefits. She emphasized the significant opportunity for growth and innovation in the healthcare and insurance sectors to improve access for all individuals in the country. Njomo discussed the government's initiatives towards universal healthcare and the need for more work to be done to ensure access for everyone. With the majority of healthcare expenses in Kenya being paid out of pocket amounting to an estimated 3.5 billion annually, the potential for medical providers and insurance businesses is substantial. Njomo stressed the importance of affordability in healthcare products and highlighted initiatives to introduce more accessible insurance plans starting at just 4,300 Kenyan shillings for coverage of 100,000. She also pointed out the opportunity presented by the gig economy, self-employed individuals, and MSMEs for expanding insurance coverage to a wider market. The healthcare industry is focusing on innovation to provide tailored solutions for different group segments, with international players showing interest in the market as well. Telemedicine has emerged as a promising avenue to reach underserved areas and provide affordable healthcare services. Njomo acknowledged the challenges posed by low healthcare prioritization due to cultural factors and the need for more consumer education and awareness. Furthermore, she discussed the evolving landscape of telemedicine and the potential for increased adoption to enhance access to healthcare services. Fraud remains a significant challenge in the insurance sector, impacting costs and the quality of care. Njomo highlighted various forms of fraud, including impersonation and collusion, and emphasized the importance of leveraging technology to combat fraudulent practices. Insurance companies like Jubilee are focusing on preventive care programs to address lifestyle diseases and improve overall health outcomes. Njomo outlined initiatives such as myisha Fiti, which promotes preventive healthcare measures and chronic disease management programs. By emphasizing wellness and prevention, insurance companies aim to reduce healthcare costs and improve population health. Looking ahead, Njomo expressed optimism about the future of insurance in Africa, citing a growing demand for quality and affordable healthcare services. She emphasized the role of technology in dynamic pricing and personalized insurance plans based on customers' health behaviors. The industry is moving towards a greater focus on wellness and prevention, with international insurers showing interest in expanding their presence in the African market. Njomo believes that with the right strategies and leveraging emerging trends, the future of affordable healthcare in Africa is bright, with ample opportunities for growth and innovation.