DHL Group has announced a significant investment of around €500 million ($575 million) in healthcare infrastructure across Africa and the Middle East over the next five years. This move aims to capitalize on the increasing demand for healthcare services in the region, partly fueled by China’s growing presence.
Annette Naude, the head of healthcare for Europe, Middle East, and Africa (EMEA) at DHL, emphasized the company’s focus on high-value, time-sensitive shipments such as vaccines, stem cells, and cryogenic materials in Africa. She highlighted the potential for growth in the region, citing the influx of Chinese investors making significant investments in Africa.
Africa, known as the world’s fastest-growing continent by population, is experiencing a surge in demand for pharmaceutical products. The pharmaceutical market in Africa is projected to generate $33.8 billion in revenue by 2030, according to Grand View Research.
DHL’s strategy includes allocating approximately 25% of its €2 billion global healthcare investment to Africa and the Middle East, amounting to roughly €500 million over the next five years. The company’s healthcare operations in the region encompass warehousing, packaging, and supply-chain management, with key hubs in South Africa, Egypt, Kenya, Dubai, and Saudi Arabia.
A key focus for DHL is ensuring the proper tracking of medical products from production to delivery, especially drugs and devices. The company has established specialized warehouses to support ultra-cold shipments and product serialization, emphasizing safety and traceability in the healthcare supply chain.
Naude emphasized the importance of building trust in the healthcare supply chain, particularly when it comes to transporting medicine from production to the patient’s bedside. While addressing prevalent diseases like malaria remains a priority, Africa is also facing new healthcare challenges.
One emerging trend highlighted by Naude is the increasing demand for advanced insulin therapies from China, driven by their ease of use and longer-acting formulas. This trend is appealing to many governments across Africa, seeking innovative healthcare solutions.
Furthermore, Naude mentioned a recent collaboration between China and DHL to establish a medical devices facility in Kenya. The facility now exports equipment to markets in the Middle East and Europe, showcasing Africa’s growing role in global health supply chains.
In conclusion, DHL’s significant investment in healthcare infrastructure in Africa and the Middle East reflects the company’s commitment to meeting the rising demand for healthcare services in the region. The collaboration with Chinese investors and the focus on advanced healthcare solutions underscore the evolving landscape of healthcare delivery in Africa.
