KEY SECTORS / HEALTHCARE
Healthcare
An underserved healthcare sector with enormous growth potential.
116Million
population, 21% in urban areas
5th
largest economy in Africa
3th
fasted growing economy from 2000 to 2018
Ethiopia represents an attractive investment opportunity for investors in the healthcare sector
Ethiopia represents an attractive investment opportunity for investors in the healthcare sector. While significant investment—both public and private—has been flowing into the health sector recently, there is still a significant unserved market for specialized medical services.
There are over 28,000 healthcare service providers in Ethiopia. However, this is insufficient for the growing Ethiopian population: the country’s ratio of 0.3 hospital beds per 1,000 people is one of the lowest in the world. At the tertiary healthcare level, there are only 364 hospitals in the country; of these, only 17% are private—leaving a huge gap for private healthcare operators to cater to the growing middle class. Also, as 85% of the private hospitals are in Addis Ababa, there is a significant opportunity for healthcare providers in the interior of the country.
Invest in ethiopia
A ripening market offering quick win opportunities
Ethiopia has a large and growing unserved market
Ethiopia has a large and growing unserved market. The lack of specific healthcare services is forcing many Ethiopians to seek care in India, Thailand and the United States. Annually, more than 6,000 patients travel overseas for treatments including orthopedics, cancer, cardiovascular procedures, renal transplant, neurosurgery and ophthalmology—spending more than $120 million annually. Many advanced laboratory and pathology tests are currently unavailable in Ethiopia.
Ethiopia has the potential to become a regional healthcare hub in Africa. Lack of advanced healthcare and diagnostics does not affect only Ethiopia. The citizens of many African countries spend millions of dollars for overseas treatment. Ethiopia is well positioned to cater to this growing market due to its strategic location in Africa and the network created by Ethiopian Airlines, which connects Addis Ababa to more than 120 countries and the whole of Africa.
$5Billion
Healthcare spending in Ethiopia by 2024-2025
30% spent at general and specialized hospital level
$120Million
Annual spending Ethiopians for overseas treatment
Ethiopia can become a regional healthcare hub in Africa
Lack of advanced healthcare and diagnostics is not a problem affecting only Ethiopia. Many African countries spend millions of dollars for overseas treatment. Ethiopia is better positioned to cater to this growing market due to its strategic location in Africa and the network created by the Ethiopian Airlines, which connects Addis Ababa to > 120 countries and the whole of Africa.
The Ethiopian market offers various attractive opportunities in the healthcare space.
Investors can choose a single or multiple, end-to-end investment opportunities.
Tertiary Hospitals
Tertiary hospitals with the capacity to host a minimum of 300 beds and cater to local and inbounds clientele- creating a health tourism opportunity.
Advanced Diagnostics & Laboratory
Advanced diagnostics and laboratories offering over 400 tests in Ethiopia, including the production of laboratory reagents. Currently, many advanced laboratory and pathology tests—including hematologic malignancy tests, solid tumor biopsies, immunohistochemistry, genetic sequencing (chromosomal tests), SLE tests, scleroderma tests, and serum vitamin tests—are not locally available.
High Impact Public Health Services
Providing high-impact public health services, including care for tuberculosis, HIV, Malaria, RH and NCDIs.
Development of Healthcare Professionals
Development of healthcare professionals including midwives, anesthesiologists, obstetric surgeons and other high-end specialties and subspecialties.
Paving the way for investors
There is strong commitment from the government to improve healthcare in Ethiopia. The government is implementing the second Ethiopian Health Sector Transformation Plan, which aims to enhance private investment in strategic areas. The Ethiopian Ministry of Health is looking to partner with investors and ensure successful implementation of projects. The Ethiopian Investment Commission is also proving all necessary services to investors during their pre-implementation, establishment and operation journeys.
Testimonials
“We are excited to play a leading role in in enhancing Ethiopia’s health sector. The Roha Medical Campus will create an Ethiopian hub for medical tourism, working with Ethiopian Airlines and local hotels to create travel packages specifically for patients.”
Brooks Washington, Founder of U.S. Roha Group
“The private sector can play a major role in improving the health sector in the country, and the government in its 10 years development plan incorporates a deep working relationship with sectors alike”.
Dr. Lia Tadesse, Minister of Health Ministry, Ethiopia
Get In Touch
Our sector specialists are here to provide specialized
information and assistance and answer your questions
information and assistance and answer your questions