The medical device sector is large, diverse, competitive, and highly innovative, but these devices do not reach people equally around the world. From wheelchairs to blood tests, ultrasound machines and more advanced imaging tools, availability in low- and middle-income countries is often very limited, making it difficult for people to access effective healthcare. New barriers are emerging.
Part of the success is due to the focus on what is needed to achieve the United Nations Sustainable Development Goals on health, as governments, development agencies and other stakeholders We need to identify barriers to access to affordable healthcare, including equipment, and develop strategies. To overcome this.
Why is access to medical devices important?
Let's take diagnosis as an example. In low-income and lower-middle income countries, only 19% of people have access to the simplest diagnostic tests. The Lancet Commission found that 1.1 million deaths could be avoided in these countries by simply improving diagnostics for six diseases: diabetes, hypertension, HIV, tuberculosis in the general population, and hepatitis B virus infection and syphilis in pregnant women. I estimate that it can be done.
What is stopping us from expanding access?
One reason for this is that many countries require these devices to be imported from countries such as the United States, Europe, Japan, and China, resulting in additional costs for transportation, distribution, and limited access to foreign currency. This means that the cost will be higher. Reliance on imports also makes developing countries' health systems more vulnerable to emergencies during crises, when countries could be securing supplies at home, or when supply chains collapse, as has happened during the COVID-19 pandemic. will be at risk.
Even when equipment is available, a lack of trained staff, replacement parts, and repair technicians can make it difficult to keep it running. Additionally, complex machines designed for temperature-controlled comfort in developed countries may not perform well in the heat, humidity, and other difficult conditions of poor regions.
Finally, not all developing countries have the necessary regulations to use advanced medical equipment from other countries.according to Global health: science and practiceMany countries in Africa do not have the resources or knowledge to regulate certain medical devices, so countries often rely on European or US regulatory agency approvals that are not designed to meet local needs and issues. compliance costs can be high. The price is outrageous for a domestic manufacturer.
Solutions tailored to local needs
Overcoming these challenges will require a multi-pronged approach, but identifying investment routes for local manufacturing of medical devices should be the first step. Localization of production, including the establishment of regional production centers that can be supported through diverse and tight supply chains, is a necessary part of improving access to health care in low-income countries. Expanding production in these markets will also help support local research and development, allowing us to create new solutions that directly target local clinical and market needs.
This path is not easy and there are many complexities. That's why IFC is working with the World Bank and partners such as the World Health Organization to help public and private stakeholders identify what is needed to support regional solutions. I am. A major challenge is that complex technologies often require long lead times and significant R&D costs. And manufacturers establishing themselves locally need to know that there is a continuing market for these devices.
This doesn't mean investors and manufacturers need to wait. Initially, you can focus on manufacturing less complex products, such as personal protective equipment and other medical consumables. Items such as syringes and bandages offer the most direct opportunity to expand local production and improve supply chain security. Founded about 15 years ago, Kenyan medical supplies manufacturer Revital Healthcare is now one of the continent's largest manufacturers, employing more than 650 people and producing 45 types of equipment. , some are for export.
Another route is to focus on product assembly. High demand for medium complexity devices such as patient monitors and electrocardiography machines is creating an opportunity to move end-stage to emerging markets. Ethiopia recently launched Africa's first ultrasound assembly plant. In addition to local assembly, there are market opportunities through technology transfer, joint ventures, and overseas investment that could further support local capacity development.
It is no surprise that the World Health Organization has issued an urgent call to action. Governments and private organizations should work closely to coordinate efforts to improve and invest in local production of health products and medical technology.
Here at IFC, we encourage stakeholders to collaborate and discuss the challenges faced in localizing production and the solutions needed, so that we can contribute to achieving sustainable and resilient health systems. We cannot wait until the next crisis occurs. We must act now.
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