‘Africa’s health products to thrive with cheap forex, others’

Product distribution in Africa requires affordable foreign exchange (forex), risk-tolerant capital and other incentives to thrive, a study supported by HealthPlus Limited, has said.

HealthPlus is a local pharmaceutical retailer supporting improved product distribution across sub-Saharan Africa.

The majority investor in the firm, Alta-Semper Capital LLP, recently contributed to a study on improving the availability, affordability, access to and quality of essential medicines in SubSaharan Africa.

According to a report of the study committee seen by Daily Trust yesterday, the Managing Partner & CEO of Alta-Semper, Afsane Jetha, served on the Learning Committee to steer the project across four countries that comprise Nigeria, Kenya, Ghana and Uganda.

It said: “For start-ups and distributors to grow and scale efficiently, they need risk-tolerant capital to develop and deploy technology-driven innovations; and access to timely, affordable foreign currency to optimize product importation.

“Affordable working capital in local currency to ease cash conversion cycles; the ability to secure affordable debt; and regulatory approaches that enable start-ups to expand scale and scope, while maintaining patient safety.”

The

study,

which was supported by Bill and Melinda Gates Foundation, also noted that “over the past 20 years, blended finance initiatives to improve health in Africa have traditionally focused more heavily on product development.”

The study also advocated for better access to debt (capital) for the health sector especially for Small and Medium scale (health) Enterprises (SMEs) in the distribution and delivery value chain.