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Increased Demand for Specialist Healthcare Services to Drive Hospital Infrastructure Development in Nigeria, says Frost & Sullivan


News provided by

Frost & Sullivan

14 Jun, 2012, 12:00 GMT

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- Investors will have to strategically manage costs to ensure profitable construction ventures

CAPE TOWN, South Africa, June 14, 2012 /PRNewswire/ -- The high burden of communicable diseases, and the increasing burden of non-communicable diseases in Nigeria, often necessitates specialist hospital care. Although Nigeria has well-equipped tertiary facilities, these do not adequately meet the needs of the entire population, opening up lucrative market opportunities in the hospital construction market.

New analysis from Frost & Sullivan (http://www.medicaldevices.frost.com), Healthcare Infrastructure: Revitalisation and New Hospital Market in Nigeria, finds that the revitalisation and new hospitals' market was valued at $125.4 million in 2010 and is estimated to be valued at $149.0 million in 2017.

"The adoption of more Western lifestyles by the emerging middle class in Nigeria, making them prone to non-communicable diseases, has increased the demand for specialist healthcare services," noted Frost & Sullivan's Healthcare Research Analyst Tinotenda Sachikonye. "With long waiting lists for tertiary healthcare services in the country's public sector, the wealthier portion of the population often seeks specialist healthcare services abroad."

While the continual demand for specialist healthcare services, coupled with a high economic growth rate in Nigeria, is expected to drive the construction of new hospitals, the high costs of construction, lack of investment and past instability of the government will determine the pace at which construction unfolds.

"The cost of construction in Nigeria is relatively high, since most inputs for building – apart from sand, cement and granite – are imported at a high cost and construction firms need to have capital to be able to generate their own power and source their own water," elaborated Sachikonye. "It is, therefore, important to manage costs to ensure profitable construction ventures in Nigeria."

Investors in this sector can also seek security of investments through public private partnerships (PPPs).

"As the country strives to boost its economy, the public sector in Nigeria has indicated commitment in ensuring accessibility of healthcare services to the population," concluded Sachikonye. "Partnering with the public sector may prove advantageous as this opens opportunities for subsidisation."

If you are interested in more information on this study, please send an e-mail with your contact details to Samantha James, Corporate Communications, at samantha.james@frost.com.

Healthcare Infrastructure: Revitalisation and New Hospital Market in Nigeria is part of the Medical Devices Growth Partnership Service programme, which also includes research in the following markets: Healthcare Overview in Kenya and Tanzania and Distributor Analysis of the Pharmaceutical Industry in Key SADC Countries, among others. All research included in subscriptions provides detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Healthcare Infrastructure: Revitalisation and New Hospital Markets in Nigeria
M7BA-54

Contact:
Samantha James
Corporate Communications – Africa
P: +27-21-680-3574
F: +27-21-680-3296
E: samantha.james@frost.com

http://www.frost.com

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