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High-Growth Potential Clinics

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High-Growth Potential Clinics

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care Providers
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Net Profit Margin: 10-15%
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Reduced Inequalities (SDG 10)

Business Model Description

Establish or acquire and operate clinics offering a variety of health services, either specialist disciplines or a wider range of basic medical services. Basic services can be covered by the Universal Health Insurance, allowing the clinics to target less well-off households. Clinics offering specialized services can target middle to higher-income segments. These clinics can develop into larger establishments, such as polyclinics.

Expected Impact

Expand access to health care services, covering prevention and treatment of essential and advances diseases.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Sassandra-Marahoué
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Savanes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Health Care

Development need
Côte d'Ivoire is struck by several epidemics, including malaria, tuberculosis, and AIDS, resulting in a high child (below 5) mortality of 74 per 1000. The Universal health coverage (UHC) remains inoperant in several areas, as the UHC card usage rate was 7.96% in 2023 (1, 12, 13).

Policy priority
Aligned with the National Development Plan (2021-2025), the National Health Development Plan (PNDS) aims to halve infant and maternal mortality rates and increase the average life expectancy from 57 to 62 years by 2025. It plans to meet its objectives by building 376 new health establishments, including university hospitals and regional health centers, and rehabilitating existing facilities (2, 8, 11).

Gender inequalities and marginalization issues
Certain diseases, such as AIDS, disproportionately affect young women and female teenagers, increasing the risk of transmission to children. In Côte d'Ivoire, young women aged 15-24 are nearly twice as likely to be living with HIV compared to their male counterparts, with 2.7% of young women affected versus 1.4% of young men. The cost of health services and medicines impedes the treatment of vulnerable populations (3, 6).

Investment opportunities introduction
Côte d'Ivoire imports over 90% of its pharmaceutical consumption, indicating high potential for a domestic industry. In addition, the roll-out of the Universal Health Insurance and pledged increase in government health expenditures would lead to increased health affordability, thereby expanding the market (7, 12).

Key bottlenecks introduction
The governance of the health system faces challenges due to fragmented efforts and overlapping responsibilities across various levels. Additionally, limited enforcement of legislation can sometimes lead to inefficiencies (11).

Sub Sector

Health Care Providers

Development need
In 2022, 28% of the population did not live within 5 km of a healthcare center. In addition the number of beds per habitant is low compared to the West Africa average, at 3.1 per 10,000 inhabitants in 2024, down from 3.4 in 2019 (4, 5, 9).

Policy priority
The National Health Development Plan aims to construct and equip a university hospital, 10 regional hospitals and 10 general hospitals. It also creates speciality centers across the country, partnering with local health centers for the fight against malaria and AIDS. In addition, the government aims to provide universal access to healthcare (6, 8).

Gender inequalities and marginalization issues
Côte d'Ivoire has a high rate of maternal deaths in Côte d'Ivoire, at 385 per 100,000 live births. This is partly caused by the lack of access to qualified staff and dispensaries, as the rate of births attended by skilled professionals was 84% in 2021. In addition, the UHC card is unevenly used between regions, with regions having usage rates as low as 1%. The health situation is considered critical in the Northern and Western regions (1, 4, 12, 13).

Investment opportunities introduction
The network of health providers is growing rapidly, with the number of first-contact health facilities rising from 2,023 in 2016 to 2,705 in 2019, a 25% increase over 3 years. In addition, 348 of these facilities have been built or rehabilitated in 2023, along with 20 hospitals. The implementation of the Universal Health Cover will have a significant impact on private clinics facilities as they generate 60% to 70% of their revenues from insurance or mutual insurance companies (8, 12, 14).

Key bottlenecks introduction
Despite the introduction of the Universal Health Cover, the system is not yet fully operational. As a result, the coverage of disadvantaged populations and reimbursement by the state may be insufficient in the short term, limiting the market size. Côte d'Ivoire also has a deficit of qualified health workers, with only 0.78 health providers and 0.18 physicians per 1,000 inhabitants (1, 4, 9).

Industry

Health Care Delivery

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

High-Growth Potential Clinics

Business Model

Establish or acquire and operate clinics offering a variety of health services, either specialist disciplines or a wider range of basic medical services. Basic services can be covered by the Universal Health Insurance, allowing the clinics to target less well-off households. Clinics offering specialized services can target middle to higher-income segments. These clinics can develop into larger establishments, such as polyclinics.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

The measurable growth prospects for the high-growth potential clinics in Côte d’Ivoire indicate a market size of USD 50-100 million, although the figure could be much larger as 70% of private clinics operate illegally, without government authorization (46).

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

Net Profit Margin: 10-15%

Case studies in the Western African region indicate a net profit margin of 10 to 14% for growing private healthcare establishments (15).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Long Term (10+ years)

Empirical data on investments in emerging market show that the payback period is six to nine years for tertiary hospitals. Given high discount rates in West Africa, longer payback periods over 10 years are warranted (54, 55).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Market - High Level of Competition

Several groups are operating in the country, including Pisam, and the number of facilities is growing rapidly. There are also a large number of illegal clinics, estimated to account for 80% of the total, which constitute unfair competition (31).

Market - Highly Regulated

Despite regulatory improvements, setting up a new clinic may prove lengthy due to public authorizations (construction permits, feasibility studies, etc.)

Business - Supply Chain Constraints

Many pharmaceutical products and medical supplies are imported, making clinics vulnerable to international supply chain disruptions. In addition, clinics operating in the north may experience delay in obtaining supplies due to an inadequate road network.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

The Ivorian population is highly vulnerable to infectious diseases such as malaria, tuberculosis, and AIDS, with 16 million cases of malaria reported annually and an AIDS prevalence of 2.1%, one of the highest in West Africa (47).

28% of the population lived more than 5 kilometres away from a public health establishment in 2022, limiting access to health (5).

With 37.5% of the Ivorian population living below the national poverty line, affordability of healthcare is a key challenge in Côte d'Ivoire, especially if it involves transportation costs in addition to medical expenses (48).

With 3.1 beds per 10,000 inhabitants, Côte d'Ivoire lags behind countries such as Ghana (9 beds), hindering patient access to medical care (5, 45).

Gender & Marginalisation

Empirical studies found that women have lower revenues and health cover, which impedes their access to healthcare, especially when health centers are located far from their home (15).

Over two-thirds of women have difficulty accessing maternal health services due to a lack of financial resources (4).

Expected Development Outcome

The opening of new clinics helps to combat epidemics by providing rapid prevention and treatment services, which limit the spread of diseases and reduce mortality rates (53).

The opening of new clinics would contribute to solving the accessibility gap in access to health services (52).

The opening of new clinics approved for universal health coverage will help lower healthcare costs for the most vulnerable populations.

The opening of new clinics would increase bed capacity, allowing for the treatment of more patients and reducing waiting times.

Gender & Marginalisation

The commissioning of new clinics, particularly with specialized gynaecology, maternity and obstetrics care, will help reduce gender inequalities in access to health services.

Increasing the number of health facilities will lower transport costs, thereby benefitting the most vulnerable populations, including women.

Primary SDGs addressed

Good health and well-being (SDG 3)
3 - Good Health and Well-Being

3.1.2 Proportion of births attended by skilled health personnel

3.2.2 Neonatal mortality rate

3.8.1 Coverage of essential health services

3.c.1 Health worker density and distribution

Current Value

In 2020, the proportion of births attended by skilled health personnel was 71.56% (2).

The neonatal mortality rate was 29 per 1000 live births in 2022 (17).

The universal health coverage service index for Côte d'Ivoire was 41% in 2019 (21).

In 2020, Côte d'Ivoire has a density of health workers of 1.4 doctor per 10,000 inhabitants, and 8.57 doctors, nurses, and midwives per 10,000 inhabitants (2).

Target Value

The National Health Development Plan 2021-2025 sets the objective of a proportion of births attended by skilled health personnel of 81.8% by 2025 (2).

The National Health Development Plan 2021-2025 indicates the objective to reach a neonatal mortality rate below 22.5 per 1,000 live births by 2025 (2).

The National Health Development Plan 2021-2025 aims to increase the number of health centers and clinics covered by the Universal Health Coverage to 80% by 2025 (2).

The National Health Development Plan 2021-2025 targets 1 doctor per 10,000 inhabitants in all districts and 23 health workers (doctors, nurses, midwives) per 10,000 inhabitants as per WHO recommendations (2, 39).

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

Communities located in the periphery of the clinics would gain better access to quality healthcare, reducing travel time and costs for medical treatment.

Gender inequality and/or marginalization

Young women, particularly pregnant women and mothers, benefit from the opening of clinics, which facilitates access to maternal and child health services.

Corporates

Local companies benefit from an expansion of their activities while local and foreign groups may open new centers.

Public sector

Municipal authorities benefit from better health outcomes in their regions, improving overall public well-being and reducing the burden on public healthcare facilities.

Indirectly impacted stakeholders

People

The general population benefits from an extended offer of health services while competition may push clinics to invest in modernization, as with the Pisam group.

Gender inequality and/or marginalization

Young women benefit from an increase in the number of clinics, allowing for more effective efforts in combating epidemics, especially AIDS, which disproportionately affects them.

Corporates

Pharmaceutical manufacturers and distributors of medicines and medical equipment benefit from increased demand.

Public sector

The opening of new clinics aligns with the government's objective to increase private sector involvement in healthcare. The opening of accredited health centers contributes to the government's "Zero Illegal Clinic by 2025" policy, which particularly aims at the sector's formalization (40).

Outcome Risks

Increased medical waste and resource consumption (water, energy) from expanded healthcare services could lead to environmental degradation if not properly managed.

Poor management of medical waste (e.g., syringes, chemicals) could lead to environmental harm, such as water or soil contamination.

The growth of private clinics can drive up healthcare costs by focusing on profitable services like elective procedures over essential or preventive care, increasing expenses for Universal Health Coverage reimbursements.

Private clinics may attract skilled healthcare professionals away from public hospitals with better salaries and working conditions, leading to a shortage of qualified staff in the public sector.

Impact Risks

If the clinics face operational issues, such as inability to recruit qualified personnel, especially if located in rural areas and far from medical schools, the impact on access to healthcare may be smaller than expected.

Poor transportation and logistics infrastructure can delay the supply of essential medical supplies, either from local manufacturing plants or through imports, affecting clinic operations and patient care.

If the establishment of clinics is limited to large cities, the effect on health inequalities could be limited.

If clinics are insufficiently covered by the Universal Health Coverage, either due to extended registration times or regulatory delays, the impact may be limited to privileged patients.

Gender inequality and/or marginalization risk: If a system of price controls or incentive mechanisms is not established, clinics may primarily service higher-income individuals or urban populations, leading to unequal access.

Impact Classification

C—Contribute to Solutions

What

Investments in new private clinics would contribute to expand access to health, increasing the number of hospital beds in the country.

Who

The opening of new centers would benefit the population, particularly young women and children, who are more vulnerable and affected by epidemics.

Risk

The main risks include operational challenges, poor logistics, urban bias, limited Universal Health Coverage, and insufficient mechanisms to address gender inequality and marginalization, all of which could restrict equitable access to healthcare.

Contribution

Private hospitals and clinics complement the public offer while relieving congestion in public hospitals, proving additionality.

How Much

The government aims to ensure that all 80% of the population live less than 5 kilometres away from a health center by 2025, and 100% over the long-term, against 72% in 2024 (2, 5).

Impact Thesis

Expand access to health care services, covering prevention and treatment of essential and advances diseases.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

The National Health Development Plan 2021-2025 outlines initiatives to improve health and reduce maternal and infant mortality. These include the construction of health facilities and increased training of healthcare workers (2).

The National Development Plan 2021-2025 outlines the government's health strategy, including increasing the number of health centers, improving service quality, and enhancing maternal and child health (11).

The National Strategic Plan for the Integration and Development of the Private Health Sector 2021-2025 (Plan Stratégique National d'Intégration et de Développement du Secteur Privé de la Santé or PSN-IDSP) aims to improve the healthcare system in Côte d'Ivoire by strengthening the governance of the private health sector, improving access to healthcare services, notably by encouraging the establishment of private clinics, and promoting public-private partnerships (22).

Financial Environment

Financial incentives: Following the 2014 Law establishing universal health coverage, the UHC covers 70% of the insured's health expenses, which will increase demand for private clinics by allowing lower-income individuals to get treated in private institutions (44).

Other incentives: The International Finance Corporation (IFC) has been involved in structuring Public-Private Partnerships (PPP) for affordable healthcare services, including diagnostic and laboratory facilities in 14 hospitals (27).

Other incentives: Proparco, a development bank, provides loans to companies in the healthcare sector (particularly clinics and imaging centers), with a minimum amount of 10 million euros (USD 10.8 million) (49).

Other incentives: The International Finance Corporation's Medical Equipment Access Program helps healthcare SMEs in East and West Africa secure local currency loans for essential equipment. With USD 300 million in financing, it uses risk-sharing with financial institutions and manufacturers, while offering technical assistance to improve financial management and equipment acquisition (58).

Regulatory Environment

Decree No. 96-877 (1996) "Concerning the classification, definition, and organization of private healthcare facilities" details the classification and regulations applicable to the establishment of private health centers (42).

Loi n° 2019-677 "guiding public health policy in Côte d'Ivoire" acts as a new public health code. Article 73 indicates that the government promotes the private health sector, and that the creation and operation of health centers is subject to regulations (41).

Decree No. 2013-792 requires public primary care establishments in Côte d'Ivoire to source all medicines through the state-controlled Nouvelle Pharmacie de Santé Publique. It aims to centralize the procurement and distribution of medicines and strategic inputs to ensure accessibility (24).

Order No. 316/MSHP/CAB was issued in December 2020 by the Ministry of Health, Public Hygiene and Universal Health Coverage to prohibit private health establishments without operating rooms from conducting deliveries (39).

Law No. 2014-131 institutes the Universal Health Coverage and outlines its terms of application (43).

Marketplace Participants

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Private Sector

Novamed, Association des Cliniques Privées de Cote d'Ivoire, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Nouvelle Clinique Farah, Polyclinique internationale Sainte-Anne-Marie (Pisam), Clinique Notre Dame de l'Incarnation.

Government

Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI), Ministry of Health and Public Hygiene, Ministry of Economy, Ministry of the Economy, Planning and Development, Nouvelle Pharmacie de Santé Publique.

Multilaterals

Joint United Nations Programme on HIV/AIDS (UNAIDS), International Finance Corporation (IFC).

Non-Profit

Santé Espoir Vie – Côte d'Ivoire (SEV-CI), Proparco.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Côte d'Ivoire: Vallée du Bandama

Vallée du Bandama is the second most affected district in terms of difficulties in obtaining medical care (52% of the population). Access to healthcare remains limited, with 8 healthcare professionals per 10.000 inhabitants (4, 50, 60).
semi-urban

Côte d'Ivoire: Sassandra-Marahoué

The Sassandra-Marahoué district is characterized by high unmet need for family planning (24%, the third highest). Establishing facilities in western towns, such as Daloa, would contribute to alleviate the health burden on public institutions, as the health situation is considered critical in this area (4, 51).
semi-urban

Côte d'Ivoire: Bas-Sassandra

In Bas-Sassandra, 35% of surveyed inhabitants declared having experienced difficulty in accessing healthcare over the last 12 months (either having to wait for very long period or having not received any assistance). The district also benefits from support from International Finance Corporation's programme for access to medical equipment in Africa, which benefits private clinics, hospitals and other health facilities (50, 61).
rural

Côte d'Ivoire: Savanes

Health needs are high in the Savanes district, with 77 % of children (6 to 59 months) suffering from anaemia. Vaccination rates (DPT-HepB-Hib, OPV2, IPV) are also lower than the national average. Additional clinics would help improve the health situation in the area, which is considered critical (4, 51).

References

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