Life Science Opportunities

An Expert's View about Dental and Medical Equipment in South Africa

Last updated: 26 Sep 2011

South Africa consists of a large public health sector and smaller but fast growing private health sector.

Sector briefing Life Science Opportunities in South Africa Why South Africa? South Africa consists of a large public health sector and smaller but fast growing private health sector. Despite its size, the public health sector caters for 80% of South Africa?s population and has been largely lacking both in infrastructure and human resources. The private health sector on the other hand is well resourced and currently services 20% of the population. In response to these challenges, the government has increased its spending on public health services from £6.3bn in the 2007/2008 financial year to £11.3bn projected for the 2011/2012 financial year. This 80% increase in just three years is a trend that is ?The South African Government expected to continue as the government plans has increased its spending on to reduce huge disparities between public and public health services from p rivate sector healthcare systems. £6.3bn in the 2007/2008 These disparities were demonstrated by the financial year to £11.3bn difference spent on medicine per person in the projected for the 2011/12 previous years, with the public sector spending financial year.? £6 versus £80 per person in the private sector. One of the initiatives aimed at closing this gap Find general information on the South African is the National Health Insurance Scheme. It market conditions on UKTI?s website. The has required specific funding to be directed Doing Business Guide for South Africa gives an towards the revitalization of existing public overview of South Africa?s economy, business sector hospitals and improving health systems culture, potential opportunities and an in order to lay a foundation for its introduction to other relevant issue implementation. UK Trade & Investment Sector briefing: Life Science opportunities in South Africa public sector makes its purchases directly or Opportunities using the tendering process, where price and supplier profile play a role in that decision The South African healthcare market is an making process. While in the private sector the open door for UK suppliers and due to South individual hospital groups make their own Africa?s strong political and trading links with purchasing decisions. Guaranteed sales most of the rest of East and West Africa, South service, maintenance and after sales care are Africa is a natural hub and springboard into essential for success. other African markets. Infrastructure Pharmaceuticals The introduction of the National Health The South African pharmaceutical sector has a Insurance Scheme has resulted in more efforts high proportion of patented medicine which and resources directed to revamping the public accounts for approximately 70% of the market. healthcare facilities through a number of PPP The South African Government?s concerns over projects. Apart from public health care plans, costs have encouraged the growth of the the private healthcare sector is also said to generics sector and South African firms are grow by 8% per annum. It is also envisaged responsible for most of the generic medicine that the NHI Scheme will increase demand not production. The sector is expected to grow at only for public hospital beds but also for 9.7% between now and 2014 to give market private hospital beds. value of £2.3bn. Both the public and private health care sectors The HIV/AIDS pandemic remains a huge present opportunities for UK companies to challenge for South Africa and the government participate in transforming the healthcare will be increasing the Comprehensive HIV/AIDS sector in South Africa. This can be done by UK funding to £2.7bn to increase the number of companies partnering with local hospital people on treatment from 1.2million to groups, and this is where UKTI will be of value 2.6million by 2013/2014 while at the same to companies interested in doing business in time controlling tuberculosis (TB). South Africa. Diagnostics With South Africa?s (and many other African countries) high disease burden, effective treatment and diagnostic procedures are essential and this is severely lacking at the moment. Fast identification and effective monitoring is especially important for infectious diseases. Medical Devices Domestic production is more focused on wound management products that are low-tech and low in value devices, while on the other hand expensive equipment such magnetic resonance scanners are being imported. It is however expected that local manufacturers will in the longer term be posing a challenge to multinationals as wound management products are likely to become more high-tech as local companies seek to move up the value chain. Total value of imported devices is about 90% of industry market value of approximately £540mn. These are supplied by foreign multinational companies through their local offices or distributors. This is mainly because the public organisations prefer to source from companies with local representation unless the product is not available in the country. The UK Trade & Investment Sector briefing: Life Science opportunities in South Africa Major events and activities UKTI contacts South African Medical Association Tshegofatso Motaung Conference Trade & Investment Advisor Venue: CSIR International Convention Centre British Consulate-General Cape Town Date: 15-17 September 2011 Tel: +27 (0)21 405 2412 Website: Email: Pan African Health Congress Saarah Salie Venue: Sandton Convention Centre Trade & Investment Officer Date: 5 -7 October 2011 British Consulate-General Cape Town Website: Tel:+27 (0)21 405 2489 Email: Africa Health Exhibition and Congress Venue: Nasrec, Johannesburg Date: 14-16 May 2012 Website: rd 3 SA TB Conference Venue: Durban International Convention Date: 12-15 June 2012 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 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 2011 by UK Trade & Investment. Crown Copyright © Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Life Science opportunities in South Africa
Posted: 26 September 2011, last updated 26 September 2011

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Life Science Opportunities in South Africa   By UK Trade & Investment
Life Science Opportunities   By UK Trade & Investment