SECTOR EXPERTISE

Healthcare

Unparalleled network of relationships and strong sector focus that benefits the entire private healthcare sector

Our long-term relationships, significant balance sheet support and deep industry expertise offer incomparable insights and solutions across the entire private healthcare sector.

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TOTAL DEAL VALUE

$1.2 bn

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DEALS DONE

42

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TOTAL CLIENTS

28

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THOUGHTS FROM OUR LEADERS

Consolidation, acquisitions and diversification will become key focus areas for private healthcare into the future

There is no doubt that private healthcare is an essential industry, but it is not without its challenges.

Locally, the Private Healthcare sector is having to deal with the uncertainty around implementation of the National Health Insurance (“NHI”) initiative and a lacklustre growth in the private medical insurance sector as a result of the economic strain felt by the consumer, which in turn impacts growth and earnings of the private healthcare providers.

Covid-19 has intensified these pressures. South Africa’s early lockdown resulted in the cancellation of the majority of elective surgeries, decimating revenues while costs continued to rise due to additional PPE requirements and the necessity to keep a full complement of nursing staff.

While this poses a significant challenge for the sector, overall we believe that while smaller players may struggle, stronger players with robust balance sheets and ample liquidity will emerge intact in a post-Covid-19 world.

This should offer a good opportunity for consolidation and various acquisitions within South Africa and across the African continent.

There will also be a necessity for diversification and specialisation in order to achieve growth and maximise on margins. Whilst expansion offshore has been a trend in the past, the relative success of these endeavours will necessitate that these companies also look to the domestic market for growth that supports overall sustainability of the private players and increased collaboration with the public sector.

In the highly competitive pharmaceutical industry, it remains important for players to penetrate large markets and retain and grow their market share both domestically and offshore.

At Absa CIB, we see our role as not only supporting balance sheets, providing risk management and debt products, but also as a trusted partner who is able to provide strategic sector-relevant insights, a deep understanding of African markets and the ability to facilitate introductions that lead to growth within our clients’ businesses and benefit the sector as a whole.

Liza Eustace

Head: Healthcare, Construction and Hospitality

Latest insights

A look at the factors driving change in this essential sector today.

Videos

In conversation with African Export–Import Bank

Effective management during a pandemic needs to be supported with cross-sector partnerships and sustainable funding.

Videos

In conversation with The Global Fund

The Global Fund is a partnership designed to accelerate the end of epidemics.

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In conversation with Africa CDC

Africa CDC is crucial in coordinating vaccination efforts to ensure we reach the 60% vaccination target.

Videos

In conversation with Momentum Health

Momentum Metropolitan has 36 vaccination centers across the country, open to both the insured and uninsured market, and have been instrumental in bringing telehealth to the home through Hello Doctor.

Videos

In conversation with The Biovac Institute

The COVID-19 vaccination coverage is low in Africa, with less than 2% of the 1.2bn population vaccinated. With Biovac partnering with Pfizer to produce about 100mn doses annually, Liza Eustace, Head of Healthcare, Construction and Hospitality Sectors at Absa CIB, spoke to Dr. Morena Makhoana, CEO of Biovac, about his learnings and predictions during this time.

Videos

In conversation with Dischem

To date, Dischem has delivered over 250,000 vaccinations across the nation. Rui Morais, talks about how they have leveraged their extensive network to build capacity for mass vaccination sites in collaboration with government and other private sector players.

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In conversation with Imperial Logistics

Imperial Logistics is South Africa’s largest logistics company and has been awarded the tender to import COVID-19 vaccines for the country’s vaccination programme.

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