Across Central and East Africa, healthcare systems and providers face challenges in procuring and keeping essential medical equipment and supplies in stock. As a result, there is a lack of access to important diagnostic and therapeutic procedures, ultimately leading to preventable deaths and other negative health outcomes for patients in under-resourced communities. At the same time, many patients are often forced to travel long distances for diagnoses at local hospitals resulting in inconvenience, long waiting times and higher prices.
Statista predicts that the current health expenditure as a share of GDP in East Africa will steadily decline by 0.02% between 2024 and 2029. The share is estimated to rise to 4.38% in 2029. This is a problem because low health care spending is linked to issues such as high infant mortality rates and low life expectancy.
Expanding health care in Central and East Africa
Venture capital backed African health technology company VIEBEG Technologies helps expand access to affordable healthcare in Central and East Africa by helping healthcare facilities procure supplies in real-time. It uses artificial intelligence (AI) to manage supply chain processes (from shipping to warehousing, distribution and inventory management) to ensure healthcare facilities have accurate medical supplies in stock.
With 56% of Africans not having access to quality healthcareadvances in technology β such as artificial intelligence, data management and connectivity β improving medical outcomes offer a real opportunity to overcome decades of challenges.
Serving over 1,000 hospitals, clinics, pharmacies and healthcare providers Rwanda, Kenya, and the Democratic Republic of the Congo, VIEBEG stands out for its innovative data-driven procurement solution called VieProcure. This platform facilitates the efficient distribution of medical supplies, equipment and pharmaceuticals, addressing critical healthcare supply chain challenges.
Founded in 2018 by CEO Tobias Reiter and Chief Commercial Officer Alex Musyokathe company works with hospitals, clinics and healthcare providers to manage and expand the supply of medical products, devices and equipment that are critical to meeting the full range of patient needs.
“We are already making inroads into other parts of East Africa, including Kenya, Burundi and Congo, and serve more than 500 facilities. The company plans to expand across Africaβ says Musyoka.
Investment
In 2023, Johnson & Johnson Impact Ventures, an impact fund within the Johnson & Johnson Foundation, invested in VIEBEG Technologies. Their investment supports the company’s plans to reach more providers and patients through continued growth and expansion in East and Central Africa β specifically Rwanda, Kenya and the Democratic Republic of Congo.
David Higgins, Chief Investment Officer at J&J Impact Ventures says:The reliable supply of essential medical products is one of the most fundamental aspects of a healthcare provider’s success. We are excited to support and develop VIEBEG’s vital work in this space, enhancing the ability of health systems to deliver care to their patients.β
Africa’s focus on health technology has the potential to provide more affordable and accessible healthcare to the continent’s 1.5 billion citizens. With 56% of Africans not having access to quality healthcareadvances in technology β such as artificial intelligence, data management and connectivity β improving medical outcomes offer a real opportunity to overcome decades of challenges.
Reiter says the company’s AI-powered medical procurement platform directly connects healthcare providers with manufacturers. This removes brokers and middlemen from the value chain, creating cost savings of up to 40% for customers.
In addition to improving revenue, the funding enabled the company to, among other things, conduct training for its employees, access working capital and employ more workers. They have created a digital platform that serves as a one-stop service for supply chain and logistics services, including ordering, shipping, warehousing, last mile distribution and inventory management. They have strengthened the resilience of these providers against external shocks such as climate disasters and political unrest, allowing them to avoid shortages and protect their patients’ access to essential care.
The company supports healthcare partners every step of the way with sophisticated AI-powered software that organizes data on regional health requirements, supply trends and patient demographics. They also ensure affordability by offering critical financial support through flexible payment plans and financing partners. Since their launch, they have successfully assisted more than 500 healthcare providers with care for more than 900,000 patients.
“When medical supply chains fail, providers have limited ability to provide care to their patients, leading to poor health outcomes. We combat this with integrated services and insights powered by artificial intelligence. When providers have all the equipment and supplies they need, they can better meet the needs of their patientsβthe ultimate goalReiter adds.
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