Global Perspective: Health tech start-ups are finding effective solutions to persistent problems and expanding access in remote areas

27 Apr 2020

Oliver Cornock, OBG Editor-in-Chief

Oliver Cornock
OBG Editor-in-Chief
Follow Oliver on Twitter LinkedIn

With demand for health care on the rise across the developing world and many governments struggling to keep pace with the changing needs of their populations, a new generation of health tech start-ups is entering the market. Harnessing the possibilities brought about by the digital revolution – notably the expansion of mobile phone penetration, but also emerging disruptive technologies such as artificial intelligence (AI), blockchain and drones – these new companies are providing innovative solutions to the health care challenges of the 21st century.

Start-ups utilising digital platforms and logistics software are expanding and enhancing treatment, helping to bridge the rural-urban divide in access to pharmaceuticals and medical professionals, while also improving pre- and postnatal care at a distance through smart phone-enabled telemedicine. Others are forging ahead in facilitating the early detection and treatment of non-communicable diseases (NCDs), along with psychiatric disorders and dementia. Many countries have recognised the potential of these non-traditional private sector players, introducing start-up accelerator programmes and forming deals with emerging tech companies to boost coverage and treatment. Nevertheless, a number of barriers to the expansion of health tech start-ups remain, ranging from underdeveloped ICT infrastructure, a lack of access to start-up capital and limited human resources.

Rising Demand

A combination of demographic and economic trends is driving an increase in demand for health care across the developing world. Populations are growing and – in some countries – ageing, while economic development supporting is the emergence of an increasingly prosperous middle class. Indeed, according to the UN, the global population is set to rise from 7.7bn in 2019 to 8.5bn in 2030 and 9.7bn in 2050, with the countries of sub-Saharan Africa projected to account for over half of this expansion. Concurrent with both population growth and a shift in consumer habits and lifestyle choices as a result of greater disposable income, emerging economies have experienced a rapid rise in NCDs, including cancer, cardiovascular and chronic respiratory disease, and diabetes. This shifting disease profile is placing considerable financial strain on developing countries, with a 2019 World Health Organisation (WHO) study of 11 emerging economies finding that the negative impact of NCDs on these states averages 4.4% of GDP per year, largely as a result of lost productivity. Due to these factors, both public and private spending on health care is rising steadily, with the combined value of the sector in emerging markets standing at $1.3trn in 2018 and set to grow by 6.3% annually through the decade to 2030 – double that of developed countries – according to UBS Investment Bank.

Read the full Global Perspective in The Report: Morocco 2020

Tags:

Health

Oliver Cornock, OBG Editor-in-Chief

Oliver Cornock
OBG Editor-in-Chief
Follow Oliver on Twitter LinkedIn

Covid-19 Economic Impact Assessments

Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.

Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.

Register Here×

Product successfully added to shopping cart