SECTOR EXPERTISE Healthcare Absa | Corporate and Investment Banking > 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. TOTAL DEAL VALUE $1.2 bn DEALS DONE 42 TOTAL CLIENTS 28 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 https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Latest insights A look at the factors driving change in this essential sector today. HEALTHCARE INSIGHTS Know why the private health sector is under pressure Absa’s Liza Eustace unpacks exactly how COVID-19 is negatively impacting the sector HEALTHCARE INSIGHTS Webinar: The Impact of Covid-19 on the Healthcare Sector A panel of experts examine the impact of Covid-19 and the measures that must be taken to prepare for what lies ahead. HEALTHCARE INSIGHTS SA’s private healthcare sector addresses COVID’s negative financial impacts While on the surface, a medical crisis benefits the healthcare sector, the realities of COVID-19 are far more complex. SUBSCRIBE FOR QUARTERLY UPDATES Analysis and data-driven insights for a changing world – delivered direct to your inbox. 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ACWA Power – UAE and Africa President, Trade Association - Africa "As a partner bank to Marubeni for over 6 years, the Absa team has provided awesome service in assisting us to establish our South Africa office. Their always-available attitude has supported us to facilitate our entry into both the South African and African Market." Marubeni Middle-East & Africa Power Limited – Japan President, Trade Association - Africa "Having a Pan-African banking partner is very important to the group as it gives us a competitive advantage in the market. We are now able to go for the projects we want because we have a partner bank that understands our business and is ready to help us materialise our growth ambitions in the continent." Gransolar Group – Spain President, Trade Association - Africa Contact us 0860 500 703 +27 (0) 10 211 3117 firstname.lastname@example.org Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered directly to your inbox. 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