This report, prepared by the International Finance Corporation and based on research conducted by McKinsey, estimates that $25 to $30 billion in new investment – including hospitals, clinics, and distribution warehouses – will be needed over the next decade to meet the growing health care demands of Sub-Saharan Africa. Of this, an estimated $11-$20 billion is likely to come from the private sector.

For-profit companies, nonprofit organizations, and social enterprises, already play an important complementary role to the public sector, accounting for as much as 50 percent of health care provision in the region. In fact, the report notes that private sector providers often have unique reach into poor and rural populations as well as the ability to provide services or products that might not otherwise be available.

But nurturing the private sector so it can grow to meet a significant portion of projected demand will require governments and international donors to make significant changes. The IFC report urges stakeholders to:

Develop and enforce quality standards so the products and services provided by the private sector reach a level of uniformity and safety required to inspire trust;

Foster risk pooling programs—such as government-funded national payment schemes, commercial insurance or community nonprofit mutuelles – that can improve the financing of health care in the region and develop higher-quality private sector providers;

Mobilize public and donor money to the private sector by earmarking aid to fund private sector entities, enable local governments to procure private sector capabilities, or help employers outsource provision of employee health care;

Modify local policies and regulations to foster the role of the private sector so market barriers are eliminated; and

Improve access to capital so entrepreneurs and business enterprises in Sub-Saharan Africa can expand and grow.

Together, these benefits are likely to lead to improved health outcomes across the region.

Read more on the IFC Web site