Former Ghanaian President John Mahama has urged African governments to rethink their approach to healthcare financing, emphasizing that the sector should be treated as an economic investment rather than merely a cost to national budgets. Speaking at the Health Plenary of the Alamein Africa Forum in Egypt, Mahama argued that increased investment in healthcare can drive economic growth, create jobs, strengthen human capital, and support macroeconomic stability across the continent. He stressed that this approach is crucial for Africa's development and sustainability.
Mahama criticized the current approach of African finance ministers and global investors, who have traditionally treated healthcare as a social expenditure to be funded only when resources are available. He described this as a "fundamental error" and emphasized that healthcare has significant economic potential. According to Mahama, health is not a charitable cost, but an investable high-growth economic sector that drives human capital, manufacturing, job creation, and macroeconomic stability. He cited research by the Copenhagen Consensus, which found that a targeted package of basic emergency, maternal, and newborn care could generate $87 in economic and social returns for every dollar invested.
The former Ghanaian President also highlighted Africa's heavy dependence on imported medicines and vaccines, describing the situation as both a challenge and an opportunity for domestic investment. He noted that Africa imports over 70% of its pharmaceuticals and nearly 99% of its vaccines, resulting in tens of billions of dollars leaving African economies each year. Mahama emphasized that this situation is being compounded by declining traditional donor assistance, citing OECD projections that health aid could fall by between 29% and 46% compared with 2024 levels.
Mahama urged African countries to mobilize domestic private capital and strengthen local pharmaceutical production in response to the decline in donor support. He identified Africa's growing population as one of the key factors supporting the business case for local pharmaceutical manufacturing. With Africa's population projected to reach 2.5 billion by 2050, Mahama emphasized that demand for essential medicines, chronic disease management, and biologics continues to grow. He stressed that African countries must position healthcare and pharmaceutical manufacturing as strategic sectors capable of retaining more economic value on the continent while creating jobs and strengthening health security.
The former President also referenced the Lancet Commission, which found that declining mortality rates accounted for nearly a quarter of total income growth in developing economies in the early 2000s. He emphasized that investing in healthcare strengthens balance sheets rather than depleting resources. Mahama's call to action emphasizes the need for a shift in mindset and approach to healthcare financing in Africa, recognizing the sector's potential to drive economic growth and stability.
Mahama's remarks at the Alamein Africa Forum highlight the need for African governments and investors to prioritize healthcare as a strategic sector for investment. He emphasized that this approach can help drive economic growth, create jobs, and strengthen health security across the continent. By mobilizing domestic private capital and strengthening local pharmaceutical production, African countries can reduce their dependence on imported medicines and vaccines while creating new economic opportunities.
The Alamein Africa Forum provides a platform for leaders and stakeholders to discuss pressing issues affecting the continent. Mahama's contribution to the forum underscores the importance of healthcare as a key sector for investment and growth in Africa. His call to action is likely to resonate with policymakers, investors, and stakeholders seeking to drive economic development and improve health outcomes across the continent.
Key points
- Mahama urges African governments to treat healthcare as an economic investment, not just a budget cost.
- Africa imports over 70% of its pharmaceuticals and nearly 99% of its vaccines, presenting an opportunity for domestic investment.
- Mahama cites research showing that investing in healthcare can generate significant economic and social returns, including $87 in returns for every dollar invested.
