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Zukunftsmarkt_Nordafrika

Nordafrika als Zukunftsmarkt für die deutsche Gesundheitswirtschaft

Unsere Gesundheit ist unser höchstes Gut: Dies wird nicht zuletzt in Zeiten der Pandemie immer deutlicher. Daher ist es wichtig, diese zu fördern und zu schützen – und zwar auf der ganzen Welt! 
Besonders der boomende Gesundheitsmarkt Nordafrikas bietet viele Chancen. Nicht ohne Grund wird das Potential der Region bereits von vielen Unternehmen in Ägypten, Algerien, Tunesien und Marokko genutzt. 

Daher haben wir Ihnen hier die wichtigsten Gründe zusammengestellt, warum auch Sie in die nordafrikanischen Märkte einsteigen sollten: 

Warum sollten Sie Nordafrika als Zukunftsmarkt nutzen? 

Die nordafrikanischen Gesundheitsmärkte sind von Fortschritt geprägt: Ihre rasanten Weiterentwicklungen bieten viel Potenzial, in die lokalen Märkte einzusteigen. Dabei bleiben die Prognosen des Wirtschaftswachstums und der Erholung nach Covid-19 positiv, sodass ein Stopp des Fortschritts nicht zu befürchten ist. Ein guter Zeitpunkt, um jetzt hier einzusteigen!  

Warum ist Ägypten ein Zukunftsmarkt? 

Kontinuierliches Wachstum, eine Vielzahl spannender Projekte und die Finanzierung von außen sowie innen machen den ägyptischen Gesundheitsmarkt zu einem der Märkte, in den Sie jetzt einsteigen sollten! Der „Emerging Market Darling“ Ägypten ist bereits seit 2017 ein Top-Empfänger ausländischer Direktinvestitionen, welche zusammen mit den staatlichen Investitionen anhaltendes Wachstum sichern. So hat die Regierung beispielsweise 237 Millionen Euro in die Errichtung von 30 neuen Krankenhäusern investiert sowie weitere 44,6 Millionen Euro spezifisch in die Verbesserung des Krankenwagen- und Rettungsdienstleistungssystems. Aber auch verschiedene Organisationen treiben den ägyptischen Gesundheitsmarkt voran: Die Alfa Medical (AMG) plant in den nächsten fünf Jahren 263,5 Millionen Euro in den Markt zu investieren, um unter anderem die Kapazitäten in Krankenhäusern durch weitere Betten zu erhöhen, während in der Pharmaindustrie CDC, EBRD und DPI eine Pharma-Investment Plattform gestartet und so bereits 205,5 Millionen Euro in die Pharmaindustrie investiert haben. Dies soll bezwecken, dass Medikamente besser verfügbar und bezahlbarer werden. Als erster nutzt der ägyptische Medizinhersteller Adwia Pharmaceuticals in Zusammenarbeit mit dem indischen Partner Celon Laboratories diese Förderung, um seine Produkte, Produktionsstätten und Standards zu verbessern.  
So ergeben sich insgesamt für Sie einige Möglichkeiten, erfolgreich in den Markt einzusteigen: 

  • Errichtung von Medical Cities: Ein Beispiel hierfür ist die Capital Med in Badr City. Diese ist mit 57,7 Hektar die größte internationale, medizinische Einrichtung im mittleren Osten, wodurch sie einen wichtigen Beitrag zur lokalen Gesundheitsversorgung leistet. Hierzu dienen zahlreiche medizinische Einrichtungen, welche sich Rehabilitation, Trauma, Transplantationen, Forschung, personalisierter Medizin und vielen weiteren Bereichen der Gesundheit widmen. Somit entsteht in verschiedenen Bereichen eine Nachfrage an Produkten und Dienstleistungen: 
    • Health-Tech 
    • Training von Gesundheitspersonal 
    • Pharmaindustrie 
    • Medizinische Einrichtungen 
    • Medizinische Ausstattung 
    • Etc. 
  • Nationales Programm für die lokale pharmazeutische Industrie 
  • Großes Potential für die Medizintechnik: Import und lokale Produktion 
  • Bemühungen eine allgemeine Krankenversicherung zu etablieren 

Warum ist Algerien ein Zukunftsmarkt? 

Mit einem kontinuierlichen jährlichen Wachstum von 11% bietet Algerien als Zukunftsmarkt immer wieder Chancen in der Gesundheitswirtschaft. Diese wird durch öffentliche Finanzierungen sowie den viertgrößten eigenen Staatsausgaben von 2,6 Milliarden Euro, allein in 2021, unterstützt: So konnte bereits ein kostenloses, öffentlich zugängliches Gesundheitssystem etabliert werden, welches alle Bürger umfasst, unabhängig von Alter oder finanzieller Situation. So kann jeder Bürger medizinische Maßnahmen in Anspruch nehmen. Daraus ergeben sich auch für die deutsche Gesundheitswirtschaft Möglichkeiten, denn: 

  • 95% der medizinischen Ausrüstung mit einem Gesamtvolumen von 700 Millionen Euro werden importiert 
  • Der algerische Markt für Medizinprodukte ist von der öffentlichen Beschaffung über Ausschreibungen abhängig 
    • Es gibt ca. zwei Ausschreibungen pro Woche für die Lieferung von medizinischen Geräten 
  • Der pharmazeutische Bedarf wächst:  
    • Im ersten Quartal 2020 sind die Arzneimittelimporte im Vergleich zum Vorjahr um 20,45% gestiegen.  
    • Der Umsatz für 2021 wird auf rund 4,5 Milliarden Euro prognostiziert. 
    • Es gibt ca. 100 Betriebe (hiervon etwa 50 ausländische Firmen wie Merck und Bayer), die fast 2000 pharmazeutische Produkte herstellen 
  • Im privaten Sektor ist der Neubau von 3-4 Kliniken pro Jahr geplant sowie 50 Projekte für die Produktion von medizinischen Geräten 
    • Hier ergibt sich unter anderem die Möglichkeit, Ausrüstung zu liefern und Joint-Venture-Partnerschaften einzugehen 
  • Digitalisierung: Der algerische Gesundheitsmarkt wird dank einer Digitalisierungsstrategie, welche die verschiedensten Projekte beinhaltet, immer digitaler: 
    • Projekt eines digitalen Krankenhauses 
    • Projekt zur Konsolidierung von Informationen zur elektronischen Krankenakte des Patienten 
    • E-Apothekenprojekt 
  • Die Bekämpfung von Krebs wird staatlich gefördert und gilt als ein Fokusgebiet, wodurch ein langfristiger Bedarf an Reagenzien, bildgebender Diagnostik und Prävention entsteht 

Warum ist Tunesien ein Zukunftsmarkt? 

Auch Tunesien bietet deutschen Unternehmen einen attraktiven Absatzmarkt: Dank des umfassenden Gesundheitssystems, welches zu den besten des afrikanischen Kontinents zählt, lassen sich hier viele Möglichkeiten für einen Markteinstieg finden. Dabei finden sich sowohl staatliche Gesundheitseinrichtungen (2200), als auch Privatkliniken (117) vor Ort. Nicht zuletzt aus diesen Gründen ist Tunesien die Destination für Inbound Medizintourismus – sowohl für Nordafrika als auch zunehmend für frankophone westafrikanische Länder. So entsteht hier ein großer Bedarf an deutschem Top-Equipment, welcher gedeckt werden muss. Der Privatsektor spielt daher eine wichtige Rolle. 
Aber auch die gut entwickelte pharmazeutische Industrie sowie die Entwicklung von E-Health bieten vielversprechende Einstiegschancen. Es wird deutlich, dass die Gesundheitswirtschaft in Tunesien eine diversifizierte Industrie ist, welche viele Einstiegsmöglichkeiten bietet: 

  • 90% der Güter aus der medizinischen Infrastruktur werden importiert 
  • Die Impfstoffherstellung vor Ort schreitet voran: Expertise und Know-How sowie medizinische Voraussetzungen sind bereits vorhanden, nun werden noch Partner für Impfstoffhersteller sowie Zulieferer gesucht 
  • Zahlreiche Projekte zur Errichtung und Verbesserung von Krankenhäusern werden zurzeit durchgeführt oder sind geplant 
  • Ausbau des privaten Marktes für Gesundheitsleistungen: Die Zahl der Betten in privaten Krankenhäusern hat sich seit 2001 verdreifacht 
  • Die geographische Lage bietet exzellente Nearshoring-Möglichkeiten und macht Tunesien so zu einem idealen Standpunkt in Nordafrika, um Ihre Aktivitäten in Nordafrika zu forcieren 
  • Die Digitalisierung und der E-Health Bereich entwickeln sich aktuell rasant und bieten dank guter Voraussetzungen (hohe Nutzerzahlen; gute Infrastruktur) noch viel Potential 

Warum ist Marokko ein Zukunftsmarkt? 

Marokko gilt als Brücke zwischen Europa und Afrika sowie gleichzeitig als Gateway für Nord- und Westafrika – ein idealer Standort also, um in den nordafrikanischen Gesundheitsmarkt einzusteigen! Dies spiegelt sich im deutschen Außenhandel mit Marokko wider, welcher ein Importvolumen in Höhe von ca. 1,25 Milliarden Euro im Jahre 2020 verzeichnet. Dank des marokkanischen Gesundheitsplans bis 2025 ist zudem eine gute Planung möglich, was in Marokko möglich sein wird. Dieser setzt sich dabei aus drei Säulen zusammen:  

  1. Die Organisation und Entwicklung des Versorgungsangebots, um den Zugang zu Gesundheitsleistungen zu verbessern 
  2. Die Stärkung von nationalen Gesundheit- und Krankheitsbekämpfungsprogrammen 
  3. Die Verbesserung der Regierungsführung und Optimierung der Zuweisung und Nutzung von Ressourcen. Ein erster Schritt hierzu ist die Einführung einer obligatorischen Krankenversicherung, welche ab 2021 für alle Bürger gelten soll. 

Zudem ergeben sich weitere Chancen vor Ort: 

  • Das Gesundheitssystem wird aufgerüstet: Hierzu werden weitere medizinischen Geräte benötigt, gleichzeitig müssen Medikamentenvorräte aufgestockt und Bettenkapazitäten in bestehenden Krankenhäusern geschaffen werden, während zusätzlich neue Krankenhauskapazitäten errichtet werden müssen. Dies bietet deutschen Unternehmen die Möglichkeit, hier eigene Produkte einzubringen 
  • Der Zulassungsprozess medizinischer Geräte, beispielsweise Krankenhausausrüstung und Beatmungsgeräte, sowie die Einfuhr medizinischer und sanitärer Ausrüstung sind beschleunigt worden 
  • Die Digitalisierung im Land schreitet voran  
    • Hier muss E-Health noch weiter ausgebaut werden: 
      • lukrative Geschäftschancen für Medizintechnikunternehmen mit entsprechendem Know-How, Softwareentwicklern sowie Consultants aus dem Ausland: Marokko ist auf Wissen aus dem Ausland angewiesen! 
      • unzureichende Versorgung in ländlichen Regionen drängt zu rascher Lösung 
      • zurzeit beschränkt sich Fortschritt noch auf staatliche Ebene 
  • Entwickelter Pharmasektor (Produzent von Arzneimitteln und Generika) mit Spielraum für deutsches Engagement 
  • Wenig Konkurrenz und Importabhängigkeit in einzelnen Nischensektoren 

Haben Sie Interesse an den Märkten Tunesien und Ägypten?

Dann unterstützen wir Sie gerne bei Ihrem Markteinstieg! trAIDe ist vom Wirtschaftsnetzwerk Afrika vom Bundesministerium für Wirtschaft und Klimaschutz zum Afrika-Berater in der Gesundheitswirtschaft akkreditiert worden. Was bedeutet das? Wir beraten Sie und Sie erhalten 75% der Beratungskosten vom Ministerium erstattet. Erfahren Sie hier alles über die Beratungsgutscheine und die Länder und Dienstleistungen, die wir Ihnen anbieten:

Jetzt Beratungsgutschein Afrika sichern und 75% der Beratungskosten erstattet bekommen
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Practical tips for entering the Nigerian market – visa, registration, and financing

If a company wants to export its products abroad or even open a sales office in the target country, the task is not only to find suitable local contacts that can sustainably support the market entry, but also to master bureaucratic hurdles. For medical products and devices in particular, these processes can be confusing and time-consuming if insufficient information is gathered.

In this blog article, we would like to take a closer look at three different topics that are very relevant for a successful market entry and often present companies with unexpected difficulties.

We will talk about the visa and entry process, the registration process, and different possibilities of financing in Nigeria. Especially for Nigeria, sufficient knowledge about these areas is important, as many processes are clearly different from what one is used to in Germany or Europe in general. This blog post provides an overview of relevant things to keep an eye on and which could be helpful when entering the Nigerian market.

Visa and entry process in Nigeria

In Nigeria, a visa is obligatory for European citizens upon entry. In addition, when entering the country, it must be credibly demonstrated (e.g. by means of a return ticket) that you will leave the country before the visa expires. The visa must be applied for at the Nigerian embassy or consulate before entering the country. An invitation from a person residing in Nigeria is required. Once you have received a visa, it is generally valid for three months, but the duration can vary. This must be clarified with the authorities upon entry.

There is also a “visa on arrival”, but this is only available to certain groups of people. You can find more information about this visa under this link.

Registration process in Nigeria

For the registration of medical devices and pharmaceutical products The National Agency for Food and Drug Administration and Control (NAFDAC) in Lagos or the Standard Organization of Nigeria (SON) is responsible. In principle, every imported medical device must be registered and the responsibility for this process lies with the manufacturer. The registration process takes about 1-2 years, but due to the current Covid 19 pandemic, delays in processing may occur.

However, there is no need to be afraid of the registration process, because if an internationally valid certification, such as SGS, is available, the registration process is mostly unproblematic and easy to manage, as long as the prescribed procedure is followed. A prerequisite for the import of medical or pharmaceutical products is the representation by a local partner on site in Nigeria. We have also created our own blog article for the search for a suitable local partner, which can facilitate the process.

If the registration is successful, the certificate is valid for five years and the company can start exporting the products to Nigeria.

Financing in Nigeria

On the one hand, there is the aspect of everyday life and that of project financing in a commercial context, such as for export projects to Nigeria.

In everyday life, it should be noted that all values over 5000 US dollars must be declared upon entry. In the country’s major cities, such as Lagos, the euro is accepted as a means of payment. It is recommended to take Euro and Dollar in cash with you when travelling to Nigeria. Credit cards should only be used with extreme caution, as credit card fraud is widespread in the country.

There are several options for financing business projects. DEG offers long-term finance and a consultancy service especially for medium-sized enterprises and their local trading partners. This can be particularly helpful for German companies, as a German desk has been set up specifically to support and advise German companies in initiating export activities.

Other financial institutions that provide loans to small and medium-sized enterprises are, among others, KfW Entwicklungsbank, Advans Lafayette Bank and AB Microfinance Bank.

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

Then we have good news for you! We have been accredited by the Federal Ministry for Economic Affairs and Climate Action as Africa-Consultant. You can apply for a consulting voucher and get 75% of your costs funded. Click on the button to learn all the details about this great offer:

Consulting Voucher for Africa: Secure 75% funding!
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5 tips for successfully doing business with Nigerians

In order to successfully build up business activities in a foreign country and to establish them on a long-term basis, it is very important to know and accept the cultural conditions and to apply them to the best of one’s knowledge and belief. In addition, there are also certain guidelines that determine the day-to-day business and the initiation of any business. These include, above all, business meetings and meetings with potential partners.

Based on the extensive experience we have already gained in cooperation with numerous companies in Nigeria, we have created a series of tips that can help German companies with business meetings.

In Nigeria it is very important to plan for a longer period of time in order not to lose flexibility and to let things run their natural course. So it is not usual to go straight to business topics, but first of all small talk is primarily done, which is filled with humor at best. Nigerians usually insist on a face-to-face meeting, because such a meeting strengthens trust much more than virtual meetings or the like. We have listed further tips that may be relevant to everyday business life in Nigeria below:

5 tips for successfully doing business with Nigerians

1. Don’t rush into business related topics!

Take some time to get to know all involved parties, to exchange business cards and to break the ice with some ease and humour.

2. Add buffer times!

Be generous and patient in your project planning and don’t expect fast negotiations and decision making.

3. Don’t be too direct!

Don’t criticize in front of someone else and choose your words carefully and wisely.

4. For a striking impression: pay the bill!

If you go out for a business lunch or dinner, you can leave a very striking impression by paying the bill. Depending on the status of the business partner, the Nigerian might offer to do so. But by insisting on paying you can make a big difference.

5. Make time for face to face meetings!

As far as it is possible the business relationship highly profits from personal meetings. When traveling is not possible it is much better to have a video conference than to only have written email contact.

Do you want to dive deeper and gather more insights about cultural differences? Check out our blog post about the 5 biggest cultural differences between German and Nigerian.

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

Then we have good news for you! We have been accredited by the Federal Ministry for Economic Affairs and Climate Action as Africa-Consultant. You can apply for a consulting voucher and get 75% of your costs funded. Click on the button to learn all the details about this great offer:

Consulting Voucher for Africa: Secure 75% funding!

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5 biggest cultural differences between German and Nigerians

Every country and every culture has its own specific characteristics, which can differ greatly from one another in international comparison. While Germany, for example, is characterized by the Prussian virtues of punctuality, order and diligence, in other countries polite manners and respect for one another’s faces play a much greater role. These cultural peculiarities should always be taken into account when visiting a country – it definitely does not matter whether you are a tourist, journalist or businessman. So if you as a company want to establish your business activities in another country, this project stands and falls with the understanding, acceptance and implementation of the cultural customs of that country. Only by taking cultural peculiarities into account is it possible to establish a long-term, profitable and friendly relationship with local partners.

Especially for Germans, the trip to Nigeria and the attempt to initiate business can be subject to unexpected difficulties. The cultural differences are very great and the German virtues play a very minor role in Nigeria – much more importance is attached to showing a certain flexibility, not taking everything too seriously and not missing a certain sense of humor.

With the support of our local partner Sunday we have summarized the following 5 biggest differences between the German and Nigerian business culture:

1. Being punctual is not such a big deal

While especially German are famous for being super punctual worldwide, punctuality is not as strongly anchored in Nigeria. Rather, several things are done at the same time and postponements of deadlines are frequent.

2. Family first!

While German take work very seriously and are mostly trying to meet family and business needs at the same time, Nigerian clearly prioritize family matters over business. This is a result of conservative and cultural norms of the Nigerian society.

3. High flexibility instead of long term project planning

If unforeseen events occur, creativity and a talent for improvisation will be applied instead of having an elaborated project and risk management in place. While Germans like long term planning, they will need to get used to being more flexible and spontaneous when working together with Nigerians.

4. Not taking everything so seriously is of big advantage

Nigerian are very polite and courteous, but don’t take everything so seriously. Putting a bit of ease and humour into a business meeting can help to break the ice fast.

5. Face-saving is of strong importance

While giving open feedback in German countries is established more and more, Nigerian avoid being too direct. Face-saving is the top priority in Nigeria, so open criticism and direct rejection is considered inappropriate.

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

Then we have good news for you! We have been accredited by the Federal Ministry for Economic Affairs and Climate Action as Africa-Consultant. You can apply for a consulting voucher and get 75% of your costs funded. Click on the button to learn all the details about this great offer:

Consulting Voucher for Africa: Secure 75% funding!

A big thank you to our local partner Sunday for supporting us with this and so many more valuable contents during the whole #countryoftheseason series!

Do you want to have a detailed overview of the Nigerian health market?

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10 tips on how to find the right business partner in Nigeria

  1. Inform yourself about the destination country, the market conditions and above all about the local culture

Without an understanding of the current economic and political situation, the state of the healthcare system and fundamental problems in the target country, it is not possible to make an appropriate assessment of existing potential. Also, and above all, in the search for a suitable local partner, it is essential that a certain basic knowledge exists so that the partner can build trust and does not doubt the seriousness of the project. Don’t expect your business partner to act as they do in your home country and don’t mix up local cultures and habits. If you think that there is an “African” business culture that covers 55 countries and 1,3 bn people, you might be surprised that you will already experience remarkable differences in behaviour and attitudes e.g. between the economic hub Lagos and the political nucleus Abuja.

  1. Establish own criteria that a potential local partner must meet

Before the search for a local partner is started, explicit thought should be given to what skills and experience the partner should have. This is especially important to ensure that the partner is up to the challenges that are presented to him or her.

  1. Execution of Due Dilligence

Before a contract is signed, all controls should be carried out (verification of the owners of the company, compliance with standards, tax obligations, origin of funds, etc.) This is particularly relevant to avoid disappointments and legal difficulties. Furthermore, it is also advisable to consult an experienced lawyer in Nigeria who is familiar with the regulations, especially in the healthcare market.

  1. Try to understand the interests and concerns of your potential partners

Not only the cultural conditions and a proper mutual understanding are highly important, but also an understanding of the goals and concerns of the local partner. The local partner will only fully commit to the business if he or she has the feeling that his or her goals are also taken into account and not just used as an instrument to achieve a one-sided goal.

  1. Show commitment to the country despite difficult times

Even if the goal of market entries is of course an increase in sales, under sustainability aspects it should definitely be emphasized that one should offer added value for the whole country. Especially in African countries, which are backwardly developed compared to European countries and face a variety of challenges, it is important to support your local partners also in difficult times and to actively engage in improving the situation in the future. This should be communicated to the local partner in all sincerity.

  1. Adapt your goals and assumptions to the target market

It is not enough just to be informed about the conditions in the target country, because the goals and potential assessments must also be adjusted accordingly. Make it clear to the local partner that you know about the country and that your goals have been formed based on this information. This not only avoids disappointment when set goals are not achieved, but also shows a potential partner that you have truly engaged with the target country.

  1. Focus on the future and sustainable management, not on short-term profits

Local partners are not interested in harming the domestic country through quick profits. It is therefore important to emphasize a long-term commitment in the target country when entering the market, so that a potential partner recognizes the project as a good opportunity.

  1. Fostering personal contacts and expanding your own network

As a general rule, personal contacts are extremely important for the establishment of a network. According to this, the chances of finding a suitable local partner are greatly improved when personal contacts are made. In pandemic times, make use of digital information and networking events, as long as you are not able to travel to the target country in order to get a feeling for your sales potential in the market as far as you can.

  1. Seek assistance from a market entry specialist

Market entry specialists like trAIDe GmbH have made it their business to support companies in this relevant but sometimes difficult process. Such a partner has many advantages since substantial steps are taken over and the enterprise can concentrate on the essentials. Furthermore, the experience of market entry specialists which cover a wide range from information about the target country to own networks can play a decisive role saving you time and money.

  1. Business Initiation Trip

A central field of market entry specialists like trAIDe GmbH are business initiation trips to the target country, where the market entry specialist takes care of the entire program. Not only are there excursions, which are extremely instructive and explain the conditions on site and the health market in an optimal way, but there are also business meetings with potential partners. In this way, numerous potential partners are met personally within a few days, so that the basic elements for a successful market entry can be established while you get familiar with the local culture too.

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

Then we have good news for you! We have been accredited by the Federal Ministry for Economic Affairs and Climate Action as Africa-Consultant. You can apply for a consulting voucher and get 75% of your costs funded. Click on the button to learn all the details about this great offer:

Consulting Voucher for Africa: Secure 75% funding!
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How to find the right business partner in Nigeria

Without a trustworthy local partner a successful market entry is almost impossible. This applies especially for Nigeria, where foreign companies willing to do business must be represented by a locally registered, authorized Nigerian agent.

Despite the fact that both local business partners and representatives of authorities are very interested in business relations with European and primarily German companies, many companies describe the search for suitable distributors as long and difficult.

According to our experience, this is due to the fact that the selection of reliable distributors in Nigeria with the appropriate know-how and the necessary network is very time-consuming and especially the larger suppliers may not be interested in new partnerships. Often, however, other reasons also play a role why partnerships are not expanded or do not come about at all. Therefore, proper preparation for planned export activities is of special importance.

First of all, information and knowledge about the target country is essential, especially of course about the local economic and cultural conditions. Without this knowledge, setting suitable objectives is already a problem, which should be adapted to the target country. Furthermore, many local partners can only be convinced if the export activities are not designed for short-term profits, but for long-term and sustainable cooperation. In the best case, the local partner should have the feeling that you as an exporter are aware of the problems in the country and have an active interest in improving the situation in the target country (win-win-win mindset). When looking for a suitable local partner, it helps to image the ideal business partner: which characteristics, knowledge and skills should the potential partner bring into the cooperation and how should this cooperation ultimately be structured? A good starting point is the development of own criteria, which already limit the search by reasonable parameters. Understanding the goals and interests of the local partner is also very important in order to get a feeling for the partner’s behavior and background. In any case, the use of due diligence practices is recommended to avoid disappointment and legal difficulties. This includes a thorough background check of the potential business partner including the financial resources at hand.

Besides these issues, personal contact is of utmost importance in Nigeria. Therefore, it makes sense to get support from market entry specialists if necessary and to organize a business initiation trip as part of the cooperation, which enables personal contacts.

In the next article we will post 10 tips that can facilitate the search for a suitable local partner. These 10 tips are the result of many years of experience in the field of market entry and are intended to help in finding the right partner and thus significantly raise the chance of a successful first step into the new market. Stay tuned!

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

Then we have good news for you! We have been accredited by the Federal Ministry for Economic Affairs and Climate Action as Africa-Consultant. You can apply for a consulting voucher and get 75% of your costs funded. Click on the button to learn all the details about this great offer:

Consulting Voucher for Africa: Secure 75% funding!
Matthias Brandt from trAIDe and local partner Sunday

The impact of the Corona virus on the Nigerian health market

The current Corona crisis has mayor implications on all of our lives not only privately but also business wise. Our export consultant Matthias Brandt has conducted an Interview with Sunday, our local partner in Nigeria. Watch the video and find out what the two experts have to say about the current situation, its implications but also arising chances.

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Healthcare market potential of Nigeria

“The country is so big, the healthcare system so poor and the opportunities so many.” (Philip Okito, CEO, trAIDe Health)

Nigeria, Africa’s emerging giant still suffers of growing pains

Nigeria has the biggest black population in the world with approximately 200 Mio. people. Today, every 6th African is Nigerian. The growth rate of the Nigerian population is tremendous with more than 5 Mio. people adding yearly. According to the United Nations, the population of Nigeria will double and reach 400 Mio. by 2050, bigger than the US! But Nigeria is not only the largest population of Africa but also the biggest economy. Nigeria is already among the world’s top 20 oil & gas producers today and among the top 10 worldwide in reserves.

The growing population and economy make Nigeria not only an attractive consumer market but also a promising healthcare market, with a growing demand for medical products and services.

Here are some of the health challenges that Nigeria faces:

●     Increased number of heart disease, diabetes, and cancer due to the adaptation of western lifestyle, especially in bigger cities like Lagos, Kano, and Ibadan.

●      Child mortality rate is among the highest worldwide with 1 out of 5 children dying before the age of five.

●      Maternal death: Nigeria has the fourth highest maternal mortality ratio worldwide with 1 out of 13 women dying while giving birth.

The demand for healthcare services in Nigeria is high and will increase with the growth of the population. Unfortunately, this rising demand cannot be covered by Nigeria’s weak healthcare system today:

• There are currently 41,000 hospitals (according to the health facility registry, HFR) in Nigeria with 70% being privately owned. Nigeria’s shocking 0.8 beds per 1,000 inhabitants compares poorly to 8 beds per 1,000 inhabitants in Germany.

• Although Nigeria has well-educated and trained physicians, the total amount of medical professionals such as doctors, nurses, and midwives is too low to provide sufficient services to its growing population (0.4 doctors per 1,000 inhabitants). Especially in rural areas, the coverage of medical services is very thin. These statistics are even worsened by a growing amount of specialists migrating abroad causing a major brain drain effect.

• Less than 10 % of Nigeria’s population is covered by insurance and therefore 2/3 of the costs for medical services are paid out-of-pocket by the patients. Unfortunately, most often only the high-income population is able to afford medical treatment. This is a major topic that the public sector would have to tackle through its National Health Insurance Scheme (NHIS) in the short to mid-term.

Nigeria should turn its health problem into a health asset and become the medical hub for the West African region.

Prof. Onyia, the advisor for the Office of the Vice President and Minister for power, works and housing and therefore strongly linked to the federal government said in his speech in Abuja:

“Instead of losing over $1 billion yearly to medical tourism, Nigeria should invest in the local healthcare infrastructure and treat its people themselves. But let’s not stay there: Nigeria should be the medical hub for the whole West African region.”

This vision of Nigeria being the medical hub for West Africa could be a driver for investments in the healthcare sector. Multiple projects were already launched by the public sector to tackle this opportunity and more are in the pipeline. Overall, Nigeria’s need for foreign support offers large potential for healthcare companies.

These medical devices/disposables are in high demand:

●    Diagnostic Equipment – particularly the radiological and imaging devices (Magnetic Resonance Imaging (MRI), Computed Tomography scan (CT), Digital X-Ray, Ultrasound, Mammography, and Ultrasound Scans

●    Testing equipment for malaria parasites, drug abuse, and infectious diseases such as HIV/AIDS and tuberculosis, but also COVID-19

●    Primary Care Devices e.g. Ventilators, point of care (POC) tools, furniture

●    Laboratory Equipment in general

Investment in local facilities or specific medical tourism projects:

●    There is a big demand for specialized health care such as treatments for cancer, laser surgery, cosmetic surgery, kidney transplant, neuro and cardio health support.

●    Co-operations between local hospitals and specialized European hospitals such as orthopedics and kidney transplants or even cosmetic surgery. Most of the health tourists fly to India to get treatment. Treatment in Europe can be attractive because of the logistic advantages.

E-Health and Telemedicine:

●    E-Health and Telemedicine are clearly lacking in many public health facilities. A lot of health care service providers still operate manually. Digital hospital management systems are needed

●    Due to the poor coverage of healthcare services especially in rural areas there is a high demand for services such as telemedicine and especially telecardiology

Financial services for the healthcare system:

●    For Nigerian companies such as hospitals or medical distributors, it is very costly to finance the equipment. Double-digit interest rates are a standard, sometimes going as high as 25%. Even though there are some European development banks that offer financial services with lower interest rates, the loans start at a minimum amount of €5 Mio.

●      Financial services that give out loans for medical investments starting from 50.000 € and with a single-digit interest rate are in high demand.

Used medical equipment:

●      The reputation for used medical equipment is not very good in Nigeria because the lifespan of used equipment is often poor. If used equipment providers can ensure the quality of their used equipment and / or give out warranties, there is a huge market in Nigeria.

Nigeria has an enormous growth potential – especially within the healthcare sector. The demand is high, public and private investments are starting to tackle existing challenges. The government’s vision is to give the population a healthcare perspective and the health tourists a local healthcare alternative. Nigeria needs foreign healthcare partners who want to contribute and profit from the vast opportunities.

Do you want to find out how the current Corona crisis has affected the Nigerian Health market? Watch our expert video and see what our export consultant Matthias Brandt and our local partner have to say about current challenges but also arising chances: The impact of the Corona virus on the Nigerian health market: Expert interview.

Are you interested in entering the Nigerian healthcare market or another promising market in Africa?

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This our first post here. Soon we will provide you with relevant background information of the global health care industries.

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