The Role of the Private Sector in Health Financing Strategies towards UHC in Africa
Co-authored article by Elena Konzourova-Graeff, Head of Public-Private Partnerships, Business Development Life & Health Reinsurance (ME&Africa) Axa France, and Mrs Marloes Kibacha, Managing Director, Africa Health Business
To attain UHC on the African continent one needs to keep in mind the following scenarios:
– Global healthcare spending represents 10% of the global GDP; this is approximately USD 8.5 trillion. However, this proportion of expenditure varies from country to country.
– High income countries, who have 20% of the global population, account for 80% global health expenditure, of which 70% is public spending.
– Middle income countries have on average 50% public health spending and in low to lower-middle income countries, public health expenditure accounts for only 20% of global health expenditure, yet these countries need to cover the majority of the global population.
– As most African countries can be classified as low tolower-middle income countries, where most of the population is vulnerable and unable to pay for quality health services on their own, it is key that public spending on health must increase significantly.
– Who to protect
– How to finance it sustainably (e.g. how to increase the public health kitty)
– How to structure it
The role of insurers in a UHC PPP insurance-based model is to actively participate throughout the entire value chain;
2. Leverage their expertise in implementing large projects supported by their wide range of skills and resources.
3. Provide budget visibility to the government by risk transfer and associate volatility at fixed costs.
4. Guarantee cost containment, limiting leakage through data analysis and fraud monitoring.
5. Attract investors to fill infrastructure gaps.
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