africa’s next top model: pro-poor health enterprises...marie stopes international monitor group...
TRANSCRIPT
SHOPS is funded by the U.S. Agency for International Development.
Abt Associates leads the project in collaboration with:
Banyan Global
Jhpiego
Marie Stopes International
Monitor Group
O’Hanlon Health Consulting
Africa’s Next Top Model: Pro-Poor
Health Enterprises
Caroline Quijada and April Warren
Abt Associates/SHOPS
March 2nd 2015
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SHOPS Project Overview
Strengthening the role of the private health sector
in the sustainable provision of family planning,
HIV/AIDS, and child health services
• USAID’s flagship global project on private sector health
• 2009-2015
• Active in more than 20 countries worldwide
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Why focus on the private sector?
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The private sector is key to achieving health
outcomes
The role of the private sector in the provision of antenatal care: a study of Demographic and Health Surveys from 46 low‐ and middle‐income countries
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The private sector serves all income
quintiles
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SHOPS Health Enterprise Fund
A challenge competition to identify and support innovative, early-stage enterprises
$3.04million
SHOPS
Sub KsPartnerships
Peers
Funders
AdvisorsPartners
Grants + Technical Assistance + Connections
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A snapshot of some of our grantees
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Innovating to serve low-income markets
• Provide a product or service
that is affordable,
appropriate, and accessible
• Innovate throughout the value
chain – design through
delivery
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How grantees are changing health care
How grantees are changing the way health care is….
Grantee Produced Financed Delivered
Echelon Local manufacturing
Jacaranda
Health
Standardize & task
shift to increase
quality & efficiency
Encourage savings for
delivery via mobile-
banking product
Comprehensive,
woman-centered care
Telemed Premium rate charged
via mobile phone
airtime
Phone-based medical
consultations and
SMS follow-up
ZanaAfrica Use local, plant-
based inputs
Small packs, with fun,
educational health
comics
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Successful Business Model Elements
• Cross-subsidization
• Offset low price for one
product or customer
segment with revenue from
another product or segment
• Bundling
• Sell products together to
save customers money and
achieve continuity of care
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Successful Business Model Elements
• Leverage existing
infrastructure
• Piggyback on established
distribution and marketing
channels
• Task shifting
• Break down processes into
simplified tasks to be
performed by lower cadre
workers
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Successful Business Model Elements
• Partner with the public
sector
• Government can buy,
organize, endorse, support
• Cultivate customer peer
groups
• A group whose shared
identity is built around a
product
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Case Study: Afri-Can Trust
• Vision: Confident girls in charge
of their own lives
• Innovation type: Reusable
sanitary napkins sold at 45%
lower price than cheapest
disposable napkins available
• Health focus: Family Planning
and Reproductive Health
• Target population: Poor women
and girls in rural Kenya
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Case Study: Afya Research Africa
• Vision: Bring health closer to
communities in underserved
areas
• Innovation type: Accessible,
affordable health kiosks co-
owned by communities
• Health focus: Family Planning
and Reproductive Health,
Maternal and Child Health
• Target population: Low-
income populations in hard-to-
reach areas
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Case Studies
• What elements of the business model will help
them succeed?
• What elements of the business model might
hinder success?
• Will the company be successful in serving the
poor and operating sustainably?
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Common Challenges
• Lacking infrastructure in low-income markets
escalates operational costs
• Pricing low can require volumes that are difficult
to achieve
• Preventive health care is a hard value proposition
• Competing with free MCH and other services
from public sector and non-profit organizations
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Health Enterprise Fund Impact to Date
• 15 new products and
services
• 48,000+ people
received health services
• 90% increase in number
of users of priority
health services
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Pearls of Wisdom
• Reaching sub-Saharan Africa’s poor can be
expensive – requires business model innovation
• How and when customers pay can be as
important as how much they pay
• Getting to scale is challenging and takes time
• Commercial enterprises have the potential to
provide priority health services to the poor in
sustainable ways
