On 6 October 2022, the African Institute for Development Policy, through the Platform for Dialogue on Health Technologies in Africa (Health Tech Platform), made a presentation at the Private Sector Investment in Health Dialogue organised by the African Union Development Agency (AUDA-NEPAD). The dialogue was convened to discuss opportunities and strategies for increasing private-sector investment in health.
Many governments in advanced economies have invested heavily in health research and development, creating new technologies to tackle diseases in their countries. In these countries, the government is often the largest source of research funding. On the other hand, governments in Africa and other emerging markets currently have relatively low technical and administrative capacities, as well as low human and financial resources to stimulate innovation significantly. Thus, the private sector’s research, development and innovation (R, D&I) are critical in sustaining investments in health. However, existing policies hinder private sector investment in R, D&I.
At the dialogue, Professor Richard Mukabana, Director of the Health Tech Platform, highlighted the experiences and good practices in private sector investment in health in Africa. He also spotlighted the level of government investment in health, the policies and incentives available for innovation in health, and critical drivers and impediments in private sector involvement in health R, D&I.
The Africa Health Strategy 2016–2030, the 2001 Abuja Declaration, and the 2013 Abuja +12 Declaration served as the foundation for the dialogue, which also drew inspiration from the African Leadership Meeting (ALM) that took place in February 2019. The ALM declaration aims at increasing domestic financing towards health to strengthen health systems and achieve quality-assured universal health coverage (UHC). The declaration includes specific provisions on the private sector’s engagement in health financing. AUDA-NEPAD is leading the private sector engagement and spearheads the development of the Private Sector Engagement (PSE) Framework and its monitoring and evaluation plan.
The high-level dialogue brought delegates from state and non-state organisations and agencies, including the African Union Commission, AUDA-NEPAD, regional economic communities and the member states, regional private sector federations and other relevant private sector associations, and development partners. The outcomes of the dialogue were an updated AU Private Sector Engagement in Health Framework, an updated Monitoring and Evaluation Framework for measuring PSE in health in the AU, and a Private Sector Engagement in Health Action Plan for 2022/2023.