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Writes Baboloki Semele
Kigali, Rwanda is set to host a significant event as stakeholders in Universal Health Coverage (UHC) gather for the High-Level Health Financing Conference in February this year. Organized by the African Union Development Agency (AUDA-NEPAD) in collaboration with the African Union Commission, African Union Centre for Disease Control, and the Rwandan government, this conference follows closely on the heels of the Pre-Kigali Summit held in Lusaka, Zambia, just two months prior.
During the Pre-Kigali Summit, the experts jointly held that enhancing private sector investment in health was crucial for African citizens, as well as the continent’s long-term growth, sustainability, and competitiveness. The experts maintained that investment in the health sector is important to preclude the growing loss of African capital through medical tourism abroad while providing Africans with timely access to sophisticated medical treatment and opportunities for job creation.
The Kigali conference is expected to build on recommendations from the Pre-Kigali summit. The High-Level Panel’s recommendations include strengthening the enabling environment for private sector investment, providing necessary infrastructure, ensuring long-term strategies, and promoting public-private partnerships. It is envisioned that these actions will enhance Africa’s health systems, create job opportunities, and reduce the continent’s reliance on medical tourism abroad.
The high-level panel made recommendations as detailed below:
RECOMMENDATIONS FOR GOVERNMENT:
a) Strengthening the enabling environment (policy, legislation, and regulation) for supporting private sector investment in health.
b) Providing requisite infrastructure and logistics, e.g. road networks, energy, electricity, etc.
c) Ensuring Long-term integrated national sector-specific strategies for the health sector with clear roles for the private sector that don’t change with each incoming Minister or administration.
d) Incentive programmes for private sector investment in health, e.g. access to land, tax breaks, subsidies, interest rates, etc., which should not be abused by corruption.
e) Provide opportunities for Public-Private sector dialogues
f) Promote Public-Private-Partnerships and joint initiatives, e.g. government
social health insurance and private insurance working collaboratively.
g) Affirmative action in procurement to support local suppliers and facilities.
h) Avoiding crowded investments and encouraging the private sector to make profits in the long term.
i) Domesticate the principles of the Africa Continental Free Trade Area Agreement
(AfCFTA) regarding the free movement of people, goods, and services.
j) Support private sector investment in health in order to provide job opportunities for
young people and women.
RECOMMENDATIONS FOR PRIVATE SECTOR:
a) Compliance with legislation, regulation, and policies.
b) Responsible private sector investment (social, and environmental performance in addition to generating a good return on investment. The private sector in health should focus on the 3Ps: people, planet and profits.
c) Private sector involvement in government planning (Opportunities for Public-Private sector dialogues).
d) Public-private partnerships and joint initiatives.
e) Innovation that contextualizes global best practices to suit our local realities to obtain
World-class results.
f) Commitment to growth in the long-term and avoiding rent-seeking and corrupt
practices.
g) Ensuring Business-to-business platforms including south-south and south-north etc.
RECOMMENDATIONS FOR DEVELOPMENT FINANCE INSTITUTIONS (DFIs) AND BANKS:
a) Develop financial products and facilities for private sector investment in health including
equity, grants, and facilities, including good de-risking /insurance instruments.
b) Provide Affordable loans and Innovative products and facilities e.g. contextualize global standards to suit local
realities.
d) Supporting public-private partnerships and joint initiatives by government and private sector.
e) Facilitate private sector investment in health.
The primary goal of the high-level financing conference is to bring together influential political leaders from across the continent, rallying support from partners to advance healthcare in Africa. The focus lies on sustaining the HIV response through innovative financing mechanisms, investment in health systems, and bolstering health financing overall. Strengthening health financing mechanisms, fostering resilience against emerging diseases, and promoting collaboration among key stakeholders are additional objectives.
The event, hosted under the auspices of His Excellency Paul Kagame, President of the Republic of Rwanda and African Union Champion of the ALM-investing in Health initiative, will unfold over two days. The conference will feature three tracks, each explored through focused deliberations: sustaining the HIV response, advancing health financing, and enhancing health security.
Track 1 centers on sustaining the HIV response by fortifying the six pillars outlined in the Roadmap to 2030, adopted during the High-Level Ministerial Meeting in Addis Ababa. Track 2, themed Advancing Health Financing, builds on the ALM declaration, supporting Regional Health Financing Hubs and launching the AUDA-NEPAD program for investments and financing in the health sector (PIFAH). Simultaneously, Track 3, Health Security, concentrates on reinforcing health product security through the African manufacture of diagnostics, vaccines, and therapeutics.
Reflecting on the Pre-Kigali Summit, Mrs. Nardos Bekele-Thomas, CEO of the African Union Development Agency-AUDA/NEPAD, emphasized the urgency of implementing the African Leadership Meeting (ALM) declaration on “Investing in Health.” This declaration, adopted in February 2019, aims to increase domestic health financing, establish regional health financing hubs, attract private capital, improve public financial management, and digitize the Africa Scorecard on Domestic Financing for Health.
Mrs. Bekele-Thomas urged the private sector to actively engage in healthcare, whether through infrastructure investments, research and development, or public-private partnerships.
“Today, Africa faces an urgent health challenge. While the continent imports 95% of its drugs, it accounts for merely 3% of all medicine production globally. Additionally, it is estimated that Africa could be losing up to $1 billion annually on overseas medical services. For example, Nigerians alone spend more than $200 million yearly on medical tourism to India. Similarly, Kenyans spend about $80 million annually to seek treatment for conditions such as cancer and brain tumors in India, underscoring the significant financial impact of such healthcare-related travel.”
Held under the theme; “Sustaining the HIV Response through Financing and Investments in Africa’s Health Systems for Improved Health Security on the Continent,” the Kigali High-Level Health Financing Conference aspires to be a transformative catalyst, propelling Africa towards enhanced domestic financing and investments in health.
With a focus on sustaining the HIV response, advancing health financing, and bolstering health security, the conference seeks to address critical challenges and pave the way for a healthier, more resilient continent.