The Med-Tech Investment Landscape in Africa: Trends, Opportunities, and Gaps

This white paper explores the rapidly evolving med-tech investment landscape across Africa, analyzing funding trends, top-performing sectors, ecosystem challenges, and opportunities for both local and global investors. It provides strategic insights for entrepreneurs, investors, policymakers, and development partners.

editor-in-chief

Jul 2, 2025 - 19:45

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The Med-Tech Investment Landscape in Africa: Trends, Opportunities, and Gaps

Abstract

Africa's medical technology (med-tech) sector is gaining traction among local and international investors, driven by rising healthcare needs, mobile penetration, and innovation hubs. Yet funding remains highly uneven, with diagnostics, AI, and telemedicine startups receiving most attention, while medical device manufacturing and B2B health platforms lag behind. This white paper provides a deep dive into the current med-tech investment landscape in Africa, highlighting opportunities, case studies, and strategies to unlock inclusive, sustainable growth.

1. Introduction

Africa bears 24% of the global disease burden but receives only 1% of global health expenditure (WHO, 2023). With over 1.4 billion people, rising chronic disease rates, and gaps in health infrastructure, technology-driven solutions have become a crucial frontier. The continent has witnessed a surge in health-tech entrepreneurship over the past decade—especially in diagnostics, mobile health, and digital insurance.

The global med-tech market was valued at USD 574 billion in 2023 and is projected to reach USD 800+ billion by 2030 (Fortune Business Insights, 2023). Africa’s share remains small, but growth is accelerating.

2. Defining Med-Tech in the African Context

Med-tech encompasses:

Diagnostic devices & kits
Telemedicine platforms
AI-powered triage and health chatbots
Electronic Health Record (EHR) systems
Wearable & IoMT (Internet of Medical Things)
Mobile health (mHealth) applications
Medical equipment manufacturing
Digital insurance & health fintech

Unlike the West, much of Africa’s med-tech focus is on accessibility, affordability, and leapfrogging infrastructure gaps.

3. Investment Trends (2019–2024)

3.1 Regional Distribution

Region	% of Health-Tech Funding	Top Countries
West Africa	38%	Nigeria, Ghana
East Africa	27%	Kenya, Rwanda
Southern Africa	23%	South Africa
Francophone Africa	8%	Senegal, Côte d’Ivoire

📊 Source: Partech Africa, Disrupt Africa, Salient Advisory (2024)

3.2 Investment Types

Seed and Series A dominate (80%)
Few Series B+ rounds (under 10% of total volume)
Growth equity and impact investment slowly increasing

3.3 Key Investors

Local: Novastar, Future Africa, Kepple Africa Ventures
International: Bill & Melinda Gates Foundation, IFC, EchoVC, Johnson & Johnson Impact Ventures
Accelerators: Villgro Africa, HealthTech Hub Africa, Google for Startups, Y Combinator

4. High-Impact Sectors

Sector	Description	Example Startups
Diagnostics	Low-cost test kits, AI-supported lab tech	mPharma (Ghana), 54gene (Nigeria)
Telemedicine	Virtual consults, remote diagnostics	Rocket Health (Uganda), Vezeeta (Egypt)
Supply Chain Tech	Last-mile delivery, e-pharmacy	Zipline (Rwanda/Ghana), Field Intelligence
Digital Insurance	Micro-health cover, claim automation	Turaco (Kenya), Reliance HMO (Nigeria)
AI/ML & Analytics	Risk scoring, disease forecasting	LifeBank (Nigeria), Baobab Circle

5. Case Studies

🇬🇭 Ghana – mPharma

A pharmacy and diagnostics supply chain startup that has raised over $90 million. It manages inventory for 850+ pharmacies and supplies low-cost diagnostics.

🔗 https://mpharma.com

🇰🇪 Kenya – Turaco

A microinsurance startup offering embedded health cover via telcos and banks. Raised over $10 million from impact investors.

🔗 https://turaco.insure

🌍 Zipline

Drone-enabled supply chain network operating in Rwanda, Ghana, Kenya, and Nigeria. Backed by Andreessen Horowitz and Goldman Sachs.

🔗 https://flyzipline.com

6. Challenges and Gaps

Challenge	Explanation
Funding Concentration	Most investment goes to 10–15 well-known startups in select regions
Hardware Hesitation	Investors prefer software due to scalability and lower CapEx
Regulatory Barriers	Unclear or inconsistent med-tech approvals and IP protection
Currency and Exit Risks	Local currency depreciation, lack of IPO or acquisition pathways
Talent Shortage	Few biomedical engineers, product managers, or regulatory experts

7. Opportunities for Growth

1. Localization of Medical Devices

Manufacture or assemble diagnostics and devices locally to reduce import costs

2. B2B Enterprise Health Tech

Tools for hospital management, health data analytics, and claims automation

3. AI in Primary Care

Symptom checkers, triage tools, and AI-assisted imaging

4. Francophone Africa

Underserved market with growing tech ecosystems in Dakar, Abidjan, and Douala

5. Health Fintech

Integrate digital wallets, micro-payments, and credit into healthcare access

8. Recommendations

For Investors

Co-invest with local funds or angel syndicates
Support technical assistance alongside capital
Explore blended finance with health-focused donors

For Governments

Create clear regulatory pathways for device and digital health approval
Offer tax breaks or incentives for local production and R&D
Promote public-private partnerships (PPPs)

For Startups

Prioritize clinical validation and evidence generation
Build inclusive, user-tested solutions for low-income populations
Engage policymakers early in product design

9. Conclusion

Africa’s med-tech sector offers significant long-term returns—not just financially, but in improved public health and economic resilience. By closing the investment gap and nurturing local innovation, the continent can shape a more sovereign and inclusive health future. Stakeholders must move beyond pilot-stage funding and help scale the solutions built by Africans, for Africans.