NIGERIA Invest in 2012-13 - Newsdesk Media

Latif said that it will be difficult to match the
commoditised healthcare industry that has built up in India,
which has come to dominate a global medical tourism market
by offering “first world care at third world prices”.
For more complicated cardiovascular problems, as
well as cancer and other serious illnesses, it is likely
that the current model, of individuals seeking care
overseas, will persist, he says.
In Nigeria, as well as in other sub-Saharan markets,
the key challenge for insurers and for service providers is
building trust, emphasises Latif. A lack of experience
with insurance services means that people often do not
believe that they will be properly covered in the event of
an accident or emergency. That will change and trust will
be gained – so long as insurers build their presence
alongside a reliable reputation, and do not focus on finding
reasons not to pay out, he adds.
The lack of consistency in service provision is also a
concern – people’s experience of dealing with individual
doctors or companies varies significantly. Word of mouth
is an important consideration, and putting in place new
standards would speed up the sector’s growth. That, Latif
says, has to be driven from within the industry. When those
issues are resolved, the market will be in place.
SOCIAL INFRASTRUCTURE 145
Testing blood samples at an HIV
conference - Nigeria has the third
highest number of AIDS sufferers
“There is that middle class,” Latif said. “That’s one
of the reasons why we’re in this game. We like to think we’re
near a tipping point in Africa.”
Once a few companies start to see the upside, he added,
there could be a demonstration effect. The huge returns
generated from investments in telecoms and financial services
saw others crowd in to those sectors.
“My view is that the reason you don’t see much
investment in healthcare in Africa… is that nobody has been
seen to make money in healthcare. You’ve got those people
who have made money in oil and gas, and you’ve got the
people who’ve made money in financial institutions and
telecoms, obviously. Those are the big plays that people read
about in the Economist,” Latif says.
“There is a rising middle class that is going to demand
better healthcare, and I think with telecoms, financial services,
oil and gas having been played, I think people are looking to
see what they can do that’s defensive but also high growth. I
think if you get the model right, healthcare is an ideal space.” ■
Peter Guest is an editor and journalist focusing on emerging and
frontier markets and has written for Africa Report, Forbes Africa,
Financial Times, The Wall Street Journal. In 2008, he was the
launch editor of the Financial Times’s This is Africa magazine
INvEST IN NIGERIA 2012-13