africa’s next top model: pro-poor health enterprises...marie stopes international monitor group...

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

Caroline_Quijada@abtassoc.com

April_Warren@abtassoc.com

www.shopsproject.org

www.healthenterprisefund.org