Life Science Opportunities in South Africa

An Expert's View about Medical, Health and Cosmetics Products in South Africa

Posted on: 4 Oct 2010

Restructuring the healthcare sector in South Africa is a government priority and offers opportunities for the UK. Government spending on healthcare is forecast at about £8,8 billion for the 2010/2011 Financial year.

Sector briefing Life Science Opportunities in South Africa Why South Africa? Restructuring the healthcare sector in South Africa is a government priority and offers opportunities for the UK. All government levels as well as the public and private hospital sectors are involved in making healthcare more accessible and affordable for the population. South Africa?s healthcare industry is characterised by a huge division between the private and public sectors both in terms of facilities and funding. Government spending on healthcare is forecast at about £8,8 billion for the 2010/2011 Financial year, up, 6,7% from the previous period. This amounts to about 4% ?Government spending on of GDP and 14% of the main budget. healthcare is forecast at about £8,8 billion for the 2010/2011 One of the biggest healthcare challenges is the rising incidence of HIV/AIDS, which is and will Financial year, up, 6,7% from continue to place considerable strain on the the previous period? public health system. The government is spending increasing amounts on health programmes, specifically relating to the prevention of HIV/AIDS, the control of tuberculosis (TB) and the promotion of healthy device industry remains underdeveloped, with living. imports catering for 90% of the market by value. Most medical devices are exempt from The South African medical devices market, customs tariffs. estimated at US$860mn in 2008, is dominated by foreign multinationals. The local medical UK Trade & Investment Sector briefing: Life Science opportunities in South Africa Find general information on the South African There are currently no regulations governing market conditions on UKTI?s website. The medical devices but this is set to change in the Doing Business Guide for South Africa gives an next year. Regulations (based to a large extent overview of South Africa?s economy, business on UK/European regulations) have already culture, potential opportunities and an been tabled in parliament but still have to introduction to other relevant issue. written into law. In terms of reimbursement, medical devices for public sector procurement is biased towards local manufacturers. Many Opportunities public institutions also operate a system of ?preferred suppliers?, whereby they will only The South African healthcare market is an source from companies on their preferred open door for UK suppliers, and due to South supplier list. Most multinationals therefore have Africa?s strong political and trading links with local offices or operate through distributors in most of the rest of East and West Africa, South order to facilitate market access. Africa is a natural hub and springboard into the African market. Infrastructure Diagnostics As outsourcing becomes a key issue in With South Africa?s (and many other African improving hospital service, the role of PPP?s is countries?) high disease burden, effective still critical. The UK will be able to access some treatment and diagnostic procedures are of these opportunities by partnering with local essential and this is severely lacking at the hospital groups and healthcare managers. moment. Fast identification and effective monitoring is especially important for infectious diseases. Medical Devices It is estimated that the South African medical device market should be worth around $US2.1 billion in the next 5 years. Wound management products in particular are likely to become a focus area as local manufacturers look to expand their existing offering. Acute wounds are a major problem due to the high level of violent crime in the country. Capital equipment and more expensive high tech equipment are sold directly to hospitals through the agency route where a local agent will represent the customer in South Africa and offers sales and after sales support and service. Much of this equipment is imported - mainly from the USA, Germany and the UK, although more products are now also sourced in China and India. Purchases are made by the public sector or through the tendering route where price is a key factor; purchases made by the private sector are made by individual hospital groups. Guaranteed sales service, maintenance and after sales care are essential for success and there is a concern within the industry that some of the agents do not offer the value and service that is expected of them by the customer. UK Trade & Investment Sector briefing: Life Science opportunities in South Africa Major events and activities UKTI contacts Pan African Health Congress Annelize van der Merwe Time: 16-18 September 2010 Trade & Investment Adviser British Consulate General Cape Town nd 2 Annual TB Conference Tel: (27) 21 405 2412 Time: 1-4 June 2010 Email: annelize.vandermerwe@fco.gov.uk UKTI?s website International Paediatric Association Congress Saarah Salie Time: 4-9 August 2010 Trade & Investment Officer British Consulate General Cape Town th 13 International Congress on Medical Tel: (27) 21 405 2489 Informatics Email: saarah.salie@fco.gov.uk Time: 12-15 September 2010 UKTI?s website Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Life Science opportunities in South Africa Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the South Africa market are you to meet contacts and promote your advised to undertake as much market research company in the Chinese market and planning as possible in the UK. UKTI?s team in South Africa, with its wide local This work is available via our Overseas Market knowledge and experience, can provide a Introduction Service (OMIS) a chargeable range of services to British-based companies service which assists British-based companies wishing to grow their business in global wishing to enter or expand their business in markets. overseas markets. This can include: To find out more about commissioning this ? Provision of market information work, or accessing other UKTI services and ? Validated lists of agents/distributors specialist advice, please visit the UKTI website ? Key market players or potential to find contact details for your local UKTI customers in the Chinese market office. ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Life Science opportunities in South Africa
Posted: 04 October 2010

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