Investment in Nigerian healthtech companies especially the healthcare-focused technology sub-sector in Nigeria and Africa is on the rise as investors seek diversification in their portfolios and push more funds into the sector.
A recent report by Briter Bridges, a platform that tracks tech investments, revealed that healthcare startups secured $330 million through over 30 deals in the first half of 2023.
HealthTech investment in Nigeria and Africa surges, outpacing other sectors
This marks a significant surge from $40 million in the latter part of 2023 and $125 million in the initial half of 2022.
This trend is noteworthy as the healthtech domain has historically been overshadowed by segments like fintech in terms of investment.
However, the health sector has outpaced others in terms of percentage growth over three consecutive quarters, indicating a growing investor interest in addressing the sector’s pressing funding needs.
The World Health Organization (WHO) states that 48 percent of Africans lack access to quality healthcare services, highlighting the urgency of financial support.
Nigeria’s healthcare infrastructure faces challenges due to outdated facilities and inadequate medical resources. Despite a rapidly growing population and high birth rates, the nation’s medical workforce remains insufficient, leading to medical tourism abroad and significant financial losses.
However, founders are stepping in to bridge these gaps, leading to the emergence of startups catering to the sector’s needs.
The COVID-19 pandemic played a role in propelling healthtech companies into the spotlight, as innovators created solutions to tackle the challenges posed by the virus.
Startups such as 54Gene, LifeBank, and Helium Health developed solutions that addressed critical healthcare needs, earning recognition and investor interest.
Funding for healthtech companies experienced positive growth year-on-year, even as other sectors faced declines.
Notable healthtech startups securing funding include Helium Health ($30 million), MYDAWA ($20 million), Yodawy ($16 million), Remedial Health ($12 million), and Dawi Clinics ($8 million).
These investments, along with grants and increased attention from specialized tech funds, reflect a growing recognition of healthtech’s potential to transform healthcare delivery and access across Africa.