By Joseph Pategou
The African continent comprises 54 countries. It is inhabited by 1.2 billion people, around 16.4% of the world’s population. From 1995 to 2010, African countries have consistently recorded strong growth.
The optimism resulting from this positive economic situation has led to the emergence of clusters in different African countries. A Cluster can be defined as a group of firms, related economic actors, and institutions that are located near each other and have developed expertise in that sector. For example, Kenya Eastlands is a cluster which specialises in clothing. This cluster targets the domestic market, mainly the rural areas.
Inaccessible healthcare, and how Clusters can solve it
Health systems in Africa, though, remain largely underdeveloped. For example, the probability of a child not making it to his/her fifth birthday is eight times higher in Africa than in Europe. 77% of the African population doesn’t have access to proper treatment facilities, while 90% of the pharmaceuticals used in Africa come from import and international aid.
African countries are already actively engaged in solving this problem. The public and private actors are working with the international organisations. This has lead to the presence of many international companies in Africa. This expansion, for now, is mainly through their subsidiaries. Despite this, 70% of the population, due to the inaccessibility of pharmaceutical products, is forced to turn to the black market.
The development of a health cluster is necessary in order to solve this problem. Clusters bring two major benefits which are critical for sustaining the African healthcare.
Innovation
Cluster firms generally tend to be more innovative. Innovation mostly happens in a dynamic environment. It is essential that competent organisations and skilled workers interact in a constructive manner to assimilate existing knowledge and generate new ideas and products.
Economic Performance
Cluster firms create more jobs, higher tax payments, hence resulting in higher wages to employees. This improves the lifestyle of the masses.
Worldwide, there are 24 active Health Clusters, out of which eleven are based in Africa. All these clusters are led by the World Health Organization. The aim is to relieve the suffering and to save lives in humanitarian emergencies, while advancing the well-being and dignity of the affected people. These Health Clusters are working to meet the health needs of approximately 67.3 million people worldwide.
Laying a roadmap
Companies need to be more involved. They must work primarily on the production of generics and biosimilars which are less expensive than brand-name drugs. This will allow a large part of the population to be treated properly, at an affordable cost. The cluster must comprise private and public actors with strong entrepreneurial spirit. The funds will come from private and public participants. Companies need to work closely with the Ministry of Health for patents and access to the market. Contributors to the cluster must come from different backgrounds and should be located closely in order to allow them to exchange ideas. Collaborative spaces like incubators should be built to encourage the sharing of equipment.
The demand for healthcare in Africa will more than double in the coming years due to the increase of the population. Clusters can pave a way to foster the development of health systems in Africa.
Joseph Pategou is a consultant specialising in the pharmaceutical industry. He is fascinated by healthcare. His major interests in healthcare lie in Strategy, Digital Innovation, and Biosimilars.