September 18 2024 15:15
AFRICA
One of the longest standing global real estate services companies in the world, Jones Lang LaSalle Incorporated (JLL) which operates across more than 80 countries, is launching a dynamic business at the Africa Property Investment (API) Summit this week.
The Healthcare and Life Sciences Consulting arm of JLL Africa, enters the market at a critical time, as investors are faced with a plethora of opportunities to develop hospitals and other medical facilities on the continent.
Sandeep Sinha , who will head the new business says this is an opportune time for investors, health professionals and facility providers to enter a market rich in potential.
Africa is the second largest continent in the world but has its youngest population. Around 1.5-billion people reside in Africa. Development across numerous already densely populated cities is heightening the need for better healthcare facilities and access to specialist doctors.
JLL, a New York Stock Exchange listed group, believes it is primed to achieve success as it helps numerous groups to facilitate projects which will help health practitioners, landlords, communities and an assortment of other people.
“JLL already has a strong presence in Africa, having successfully conducted various healthcare projects across the continent, in parts of East Africa, West Africa and North Africa. Through these initiatives, we have built valuable local partnerships and gained a deep understanding of the market dynamics and opportunities in the region,” says Sinha.
JLL Healthcare and Life Sciences Consulting will focus on creating the awareness in getting the investment in the healthcare sector and infrastructure development for the healthcare and life sciences sector for Africa.
The group has completed numerous research reports into Africa’s healthcare markets.
In 2023, JLL Africa released a white paper which considers healthcare opportunities in Africa. The group considered the healthcare spend across the African continent and compared the different regions of the continent. The paper showed that South Africa and Egypt had experienced the highest growth in spending on health since the pandemic began in 2020. These countries have the two largest gross domestic product (GDP) per capita on the continent. The next country with the highest growth in spend was Morocco.
JLL Africa is committed to helping countries to achieve universal health coverage. Universal health coverage (UHC) means that all people have access to the full range of quality health services they need, when and where they need them, without financial hardship. According to the World Health Organisation (WHO), the world is off track to make significant progress towards universal health coverage (Sustainable Development Goals (SDGs) target 3.8) by 2030. This is as improvements to health services coverage have stagnated since 2015, and the proportion of the population that faced catastrophic levels of out-of-pocket health spending increased continuously since 2000. This global pattern is consistent across all regions and the majority of countries. An increase in private investment will help to achieve the approximate beds needed for each country. Currently the benchmark for Africa for two beds to be provided per 1000 people.
Kenya, the continent’s seventh largest economy by size, is a core market for JLL. The country is in need of substantial investment to meet basic healthcare infrastructure needs.
Sinha says Kenya needs investments to the tune of between $8 and $10bn over the next 10 years to reach a bed density of 2.2 beds per 1,000 persons.
“Further market and feasibility studies need to be conducted to determine the bed capacity for hospitals and the specialties that need to be served in the particular sub-market,” he says.
Sinha and his team are encouraging people who believe in the success of African real estate but also the health of more than one-billion Africans.
There are efficient ways in which healthcare can be delivered in Africa and these need more support. JLL is encouraging businesses and investors to pursue strategies which suit the diverse and young markets across the continent.
They include mobile health clinics. These can be deployed equipped with essential medical tools and staffed by healthcare professionals. These clinics can travel to remote or underserved areas, providing basic healthcare services, vaccinations, maternal care, and preventive screenings.
Telemedicine and digital health solutions are also being implemented. They use telemedicine platforms to connect patients in remote areas with doctors and specialists via smartphones or internet-based systems. Digital health apps and SMS-based services can help manage chronic diseases, offer medical advice, and disseminate health education. Existing hospitals, especially private players can use telemedicine to reach a larger patient pool.
JLL’s Healthcare and Life Sciences Consulting arm is also in support of Public-Private Partnerships (PPPs). These collaborate with private companies, non-profits, and governments to pool resources and expertise. PPPs can help build healthcare infrastructure, provide training, and subsidise the cost of essential medicines and services, Sinha explains. JHL’s research shows that there will be an increase in PPPs operating in SA and Kenya over the next few years.
The local production of generic medicines, vaccines and medical equipment can also reduce costs and the reliance on imports. This is while support from governments and international organisations helps to build local manufacturing capacity.
JLL Africa CEO Wayne Godwin says the Healthcare and Life Sciences Consulting team has gathered a tremendous number of data points about healthcare.
“We want to use this data to help developers to close the healthcare gap. We have found that for people to succeed in African healthcare, they need to be specialised in what they offer and to understand the specifics of each market,” says Godwin.
JLL’s healthcare business will provide research, consulting, feasibility studies and help groups with market entrance. They can help owners to select the right operators and can assist with project management and the development of hospitals and other helathcare real estate opportunities.
The API Summit will take place on Thursday September 19 and Friday September 20 2024 at The Westin Cape Town.
This is a paid editorial for the Africa Property Investment (API) Summit.
alistair@propertyflash.co.za
