First steps Estonian health tech companies must take in order to enter the African market

If you are developing a health tech solution and want to expand your business in foreign markets, consider Africa. A lot is happening in Africa right now, and start-ups and scale-ups who want to reach foreign markets should keep their eye on it.

We spoke to Joel Karubiu, the Country Representative and Export Adviser in East Africa at Enterprise Estonia, about how easy it is for Estonian companies to enter the African market and the first steps that people should take.

Estonian start-ups and scale-ups offer a variety of solutions to healthcare problems, but what kind of innovation is needed in Africa? According to Joel, the most significant issues in African healthcare are the lack of affordability and accessibility to quality services. “There is a critical need for digital health solutions that can improve access, quality and affordability – med tech solutions in diagnostics and reaching the last mile,” he says.

Africa is very large, and if you are only just starting to consider foreign markets, then choosing which countries to focus on can prove daunting. Joel advises looking at countries that are familiar with digital health, where there are already players in that field and where the government has a relatively good policy and strategy environment. Currently, South Africa, Kenya and Ghana are the frontrunners in this respect.  

“It’s important to consider language and culture, as well,” Joel points out. “There are French-speaking countries in Africa, which can be good options to expand your business, but if an Estonian company doesn’t have a French speaker on its team, or their solution doesn’t include the French language, then it will be more challenging to set up business in that country.”

Estonian health technology companies’ chances of entering the African market largely depend on the type of solution the company offers and how much preliminary work the company is willing to do. Joel lists the first steps companies need to take to enter the African market:

1. Understand the local healthcare sector – including the roles and responsibilities of the public and private sectors and different subsectors (e.g. supply chain, healthcare provision and training). This helps to validate whether your solution will suit the market in question and whether you should take the next step.
2. Visit the country to see and understand the reality of it for yourself. If you are confident your solution could be used there, visit it further to get to know the culture and local environment.
3. Connect with local stakeholders and players who could support your company’s potential entry (in terms of both advisory support and a “launching” client or partner who could help with a proof-of-concept that can serve as a success story to be scaled). If possible, meet with them in person and discuss your solution and plans to enter the market.

If you have completed these three steps and are confident that the country in question is a good fit for your company and vice versa, find out what is needed in order to register your product or company there.

Enterprise Estonia has partners in Kenya who can help Estonian companies obtain more information in order to decide whether to expand their business to Africa. If your company is interested in discovering more, information is available online at www.eas.ee.