is part of the Informa Markets Division of Informa PLC
This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
According to Fitch Solutions, the Middle East and North Africa (MENA) region's US$182.9 billion healthcare market is forecast to expand to US$261.1 billion with a 13.6% compound annual growth rate (CAGR) at constant exchange rates through to 2023.
The US$30.5 billion North Africa region will post an 8.7% CAGR through to 2023.
Forecasts from Fitch Solutions indicated that Egypt’s total healthcare spending will post a local currency compound annual growth rate (CAGR) of 9.7% through to 2023 (8.4% in US dollar terms) to reach US$12.6 billion). Similar growth rates are forecast over the following five years, working out at a one-year CAGR of 9.6% in local currency (7.4% in US dollar terms), with the market forecast to be valued at US$17.2 billion in 2028. In the same 10-year forecast period, healthcare spending will drop to 2.4% of the country's GDP, its growth being outstripped by the economic growth pace.
Meanwhile, health spending per capita is forecast to reach US$117 by 2023 and US$147 by 2028, rising from US$86 in 2018. While this emphasises that public sector healthcare spending needs to increase beyond this point and at a faster rate than simple growth drivers such as population, Fitch Solutions also note that it still indicates a high proportion of private healthcare spending.
As the figures show, Egypt remains one of the most interesting North Africa regional markets. On the one hand, its rapid population growth and the start of the rollout of the universal health insurance system, which began in mid-2019 and is expected to be in place by 2032, provide a solid longer-term growth potential.
However, Egypt’s health challenges disproportionately affect the rural poor and have the potential to impact the country’s economic prosperity more broadly over the long-term. In Egypt, poor women are 20% less likely to receive regular antenatal care than wealthy women, and under-five mortality for the poorest children is 42 deaths per 1,000 live births, versus 19 in the wealthiest quintile. Current threats include high rates of stunting as a result of chronic malnutrition and one of the highest rates of Hepatitis C in the world, as seven percent of Egyptians between the ages of 15 and 59 suffer from chronic Hepatitis C. Nevertheless, as of 2018 fundamental efforts have been put in place by the Egyptian government with the 100 million healthy lives campaign to tackle those threats.
According to Oxford Business Group, though the Egyptian healthcare system is characterised by a pluralistic mix of public facilities, it has been strained by rapid population growth and relatively low levels of funding. Consequently, most Egyptians opt for private facilities, fuelling high levels of out-of-pocket expenditure and increasing the desire for private insurance.
In response, the government has initiated several reforms aimed at improving quality and access to healthcare services for its population. Demand for medical equipment, pharmaceuticals and healthcare facilities are likely to follow, offering continued private sector growth and opportunity.
With regards to the Egyptian medical device market, Fitch Solutions forecast that it would remain fairly attractive in the MENA region, due to its large size, registering a 2018-2023 CAGR of 16.1% in local currency terms and 14.7% in US dollar terms, which will take expenditure to US$1.3 billion by 2023. Although per capita expenditure will continue to be low, there is enormous potential for growth of the medical device market as the country has the largest population in the Arab world. Improving political and economic fundamentals will support long-term market growth, following recent economic turbulence and the massive depreciation of the Egyptian pound, according to Fitch Solutions analysis.
Export.gov identifies best sales prospects in medical equipment and supplies in Egypt to include, but are not limited, to the following categories:
As tourism is one of the most important parts of Egypt’s economy, a number of initiatives have been undertaken in order to support inbound medical tourism to the country. In June 2019, it was announced that Egypt is embarking on a mega project to establish the biggest medical tourism city in the MENA region with more than LE 20 billion investments. According to Eng. Ammar Mandour, head of the Badr City Development Authority, who was speaking to Oxford Business Group: “The medical city will provide the latest medical services and state-of-the-art medical equipment and devices will include 13 medical institutes with a capacity of 2,000 beds, a medical helipad, an education hospital, and a medicinal plantation.”
Previously, in February 2017, Egypt had launched the "Tour and Cure" medical tourism initiative. The initiative offers treatment to hepatitis C virus (HCV)-infected patients from all over the world, with an effective and advanced treatment program at a lower cost. This was followed in December 2018 by the approval of a draft law on medical tourism to ensure coordination between the Ministry of Tourism and Ministry of Health in the emerging field of medical tourism.
Source: Ministry of Health & Population