How African economies are adapting after global funding freeze

With a myriad of headwinds buffeting the global economy, from the United States rolling out new tariffs to cutting back on financing for health programmes in Africa, this has left a huge dilemma on the shoulders of Africa’s health systems. CNBC Africa’s Aby Agina sat down with Racey Muchilwa, CEO & President of Novartis Sub-Saharan Africa, to discuss the continent's response to the impending gaps in healthcare access and financing. Muchilwa emphasized the need to view health as an investment rather than a cost, urging governments and private sector players to step up and allocate sufficient funds towards healthcare. The interview shed light on the challenges faced by African economies in ensuring equitable access to healthcare, especially in low and middle-income countries where resources and affordability are major issues. Muchilwa stressed the critical role of governments in spearheading healthcare initiatives, citing the Abuja Declaration which calls for 15% of the budget to be allocated to health. However, most countries fall short of this target, with some allocating as little as 1% to 5% of their budget to health. He called for a paradigm shift towards viewing healthcare as a long-term investment and emphasized the need for partnerships between governments and private sector companies to address the gaps in healthcare financing. The discussion also delved into the importance of sustainable donations and corporate social responsibility in the healthcare sector. Muchilwa highlighted the significance of impactful and sustainable interventions that go beyond short-term donations, focusing on the long-term well-being of patients. He emphasized the need for a holistic approach to patient care, incorporating interventions at every stage of the healthcare journey, from diagnosis to treatment and follow-up. The interview further explored the potential role of the private sector in driving healthcare financing and access to drugs in Africa. Muchilwa discussed the challenges of local manufacturing in the continent, citing regulatory barriers, trade policies, and currency issues as major obstacles. He stressed the need for strategic enablers such as regulatory harmonization and payment systems to facilitate local manufacturing and enhance access to affordable healthcare. In conclusion, Muchilwa called for collaborative action between governments and the private sector to bridge the healthcare financing gap in Africa. He highlighted the importance of leveraging private sector expertise and resources to support governments in implementing sustainable healthcare solutions. The interview underscored the urgent need for a collective effort to ensure equitable access to healthcare and address the challenges facing African health systems.