The Ebb and Flow of Innovation: A Decline in African Healthcare Supply Chain Startups

The Ebb and Flow of Innovation: A Decline in African Healthcare Supply Chain Startups

A recent report by Salient Advisory has revealed a concerning trend: a significant decline in the number of new startups entering Africa’s healthcare supply chain sector. Following a surge in innovation during the COVID-19 pandemic, the number of new entrants plummeted by 21% between 2021 and 2022.

The report attributes this decline to several factors, including a potential decrease in demand for digital-first healthcare solutions, market saturation, and a decline in funding for the sector.

While Nigeria, South Africa, Kenya, and Egypt dominate the landscape, accounting for 60% of all startups in the sector, a significant portion of growth-stage and mature companies are headquartered outside of Africa.

Gender Imbalance Persists in the African Healthcare Tech Landscape

The report highlights a deeply concerning gender disparity within the sector. While women are significantly underrepresented among founders, with only 8% of companies solely founded by women, the challenges faced by female founders extend beyond representation.

Women-led startups face significant hurdles in accessing funding. They are disproportionately reliant on grants and debt financing, while male-founded companies primarily rely on equity investments. Furthermore, female founders often encounter gender bias in the fundraising process, experiencing longer fundraising timelines and facing greater scrutiny.

Despite these challenges, women-led startups in Nigeria and South Africa are driving innovation within the sector. However, East African startups have secured a larger share of overall funding, indicating a regional disparity in investment flows.

The Road Ahead

The report underscores the urgent need to address the challenges faced by women entrepreneurs in the African healthcare supply chain. Fostering a more inclusive and equitable investment landscape is crucial to unlocking the full potential of female-led ventures and driving sustainable healthcare innovation across the continent.

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