Disrupt Africa in a new report reveals, “The High Tech Health: Exploring the E-health Startup Ecosystem Report 2020”, the number of startups active in the health-tech space in Africa has grown by 56.5% over the last three years, with 180 ventures currently in operation — reaching record levels in the first half of 2020 despite the COVID-19 pandemic. The full list of the 180 African e-health startups will be released.
“We’re excited to present this timely research, highlighting the strengths of Africa’s e-health ecosystem,” said Ms. Gabriella Mulligan, co-founder of Disrupt Africa in a press statement.
“Interest in the e-health space in Africa has accelerated in the last 18 months, and with the advent of the COVID-19 pandemic, there is a sudden spotlight on e-health startups. In many ways now is a great time for the continent’s health-tech sector — there’s huge opportunities to prove concepts, gain traction, and achieve lasting change in healthcare,” she stated.
Adding to her remarks, Mr. Tom Jackson, co-founder of Disrupt Africa, said; “Africa’s health-tech sector is suddenly emerging as one of real value from an economic perspective, while the potential impact on ventures in this space is undeniable. With startups across the continent innovating in various areas to solve very real challenges associated with the delivery of healthcare, this report shines a light on some of those most exciting innovations.”
This enthusiasm for e-health is echoed by investors. More than half of all funding to have gone into the space in the past five years was transacted in the first half of 2020.
The report shines a light on regional e-health markets, and analyses eight sub-sectors of the health-tech ecosystem. The impact of COVID-19 is looked at, as well as a separate section on funding of the space over the last five years. So far this year, e-health startups have raised over US$90 million (roughly UGX336.9 billion), according to Disrupt Africa.
One of the ugly impacts of the COVID-19 pandemic as documented by the recent 2020 Global Startup Ecosystem Report by Startup Genome, is that about 56% of African startups are in danger of collapsing. According to the report, these startups have less than 3 months of operating capital left.