PRZOOM - /newswire/ -
Cape Town, South Africa, 2007/09/04 - New analysis from Frost & Sullivan, Sub-Saharan African Medical Devices Market, finds the markets in Kenya, Nigeria, Tanzania and Zambia earned revenues of $1.09 billion in 2006 and estimates this to reach $1.53 billion in 2012.
An improving legal framework and increased funding for the healthcare industry drive the medical devices market in sub-Saharan Africa. The market provides significant potential for companies that effectively establish sound relationships with key participants in the market and provide services oriented towards the development of the healthcare infrastructure.
New analysis from Frost & Sullivan (medicaldevices.frost.com), Sub-Saharan African Medical Devices Market, finds the markets in Kenya, Nigeria, Tanzania and Zambia earned revenues of $1.09 billion in 2006 and estimates this to reach $1.53 billion in 2012. This revenue growth will come from greater funding and the expansion of healthcare services in both the public and private sectors.
"Increased donor funding, government healthcare expansion initiatives and a uniquely high burden of disease in the sub-Saharan African region is driving demand for medical devices - both consumables and capital equipment," states Frost & Sullivan Analyst Tiwonge Mkandawire. "Despite significant challenges and restraints in the market, the region provides considerable potential for medical device companies to exploit."
Economic growth in Kenya, Nigeria, Tanzania and Zambia, coupled with concerted efforts by governments to enhance the legal framework for public procurement practices and control of medical devices on the market, are further boosting the attractiveness for product placement in the region.
Despite this promising scenario, challenges remain. Most countries in sub-Saharan Africa are plagued with substantial numbers of sub-standard, low-cost medical devices. There is also a lack of transparency in procedures to select suppliers of medical products. The market is poorly understood, presenting incoming multinational companies with a daunting task in developing effective market penetration strategies.
"With increasing patient awareness and economic growth in the region, high quality products with good after-sales services are increasingly being sought by hospitals," adds Mkandawire. "This is supported by efforts from governments to curb the presence of sub-standard products on the market through the implementation of regulatory control."
Due to the emphasis by market participants on long-standing relationships, it is imperative for medical device companies to place their products on the market early in order to capitalise on available growth opportunities. With the complexity and lack of transparency of procurement systems, a local presence coupled with suitable value-added services will be paramount in market share development.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of Hospital Purchasing and Reimbursement for Medical Devices in Key Sub-Saharan African Countries, send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com with your full name, company name, title, telephone number, email address, city, state and country. We will send you the information through email upon receipt of the above information.
Hospital Purchasing and Reimbursement for Medical Devices in Key Sub-Saharan African Countries is part of the Medical Devices Growth Partnership Services, which also includes research in the following: Key Sub-Saharan African Ultrasound Markets, Strategic Assessment of the HealthCare Industry in Key Sub-Saharan African Countries and International Donor Funding for the Healthcare Sector in Key Sub-Saharan African Countries: Historical Data & Identified Ongoing Funding Sources. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics.