Access to essential medicine is a prerequisite for basic healthcare. Yet, patients in Africa, especially those among more vulnerable groups, often find it difficult to access the drugs they need.
As a result, it is estimated that the rate of deaths from communicable diseases is higher in Sub-Saharan Africa than in any other region in the world.
Beyond the shortfall in local production, disjointed supply chains often translate into constrained access to the required medications. In national health systems, challenges range from a limited healthcare workforce to inadequate forecasting, insufficient funds, and delayed lead times.
The growing focus of regional governments on the well-being of their citizens, coupled with the increasing demand for medicine, presents significant opportunities for local businesses within the pharmaceutical industry.
Indeed, the African market is expected to grow at a compound annual rate of 3.4 per cent between 2024 and 2030.
However, small pharmacies, which play a critical role in health systems across the continent, often lack the financial resources and infrastructure needed to operate efficiently.
Many face challenges in maintaining adequate stock levels, investing in technology, and providing comprehensive services, limiting both their own growth potential and their ability to contribute towards sustainable health solutions for the communities in which they operate.
Because these smaller entities typically lack suitable information such as credit history, financial statements, and other prerequisite data points, they are often at a major disadvantage when it comes to traditional credit-scoring models.
As a result, many small businesses lack access to credit, limiting their ability to invest in growth.
However, recent breakthroughs in artificial intelligence (AI) present a turning point for such businesses and can transform many aspects of how small pharmacy businesses operate, helping them address some of their growth hindrances.
Among other benefits, AI could improve their chances of accessing financial services, optimising their processes, and enhancing their service delivery. This, in turn, could have a powerful effect on national healthcare provision, including medicine availability.
At Zendawa, for example, we are utilising AI to reimagine our operations across East Africa by creating online access to pharmaceutical offerings and solutions for small businesses and pharmacy shops located in both rural and urban areas. We currently serve 520 pharmacies in the region, to reach 10,000 by the end of the year. In rolling out our AI-powered solutions, we collaborate with tech firms Flapmax and Microsoft.
By leveraging AI, we serve our customers through a marketplace where online users can order pharmaceutical products, which are then matched to the nearest pharmacy, with last-mile delivery provided thereafter. To help streamline forecasting within pharmacies and improve access to funding, we use optimized software tools and enhanced supply chain management.
Understanding that operational expenses account for around 70 per cent of pharmacies’ annual budget allocation, Zendawa provides these businesses with a digital suite to track their online and offline sales. We then use AI to analyse data from this digital suite and develop credit scores.
These scores help unlock access to capital, which pharmacies can use to restock or pay for utilities.
Patients can also use Zendawa’s platform to book online or in-person consultations with medical practitioners. Using the same digital suite, the practitioners can share and analyse medical records to make more fully informed care decisions.
Without a doubt, effective AI integration has opened the door to more advanced capabilities, from expiry date and inventory forecasting to demand prediction and optimized inventory management processes.
The introduction of a virtual assistant has also supported our startup’s telemedicine service and overall customer experience.
In summary, we hope to continue transforming the outlook and economic contribution of local pharmacies, not only by enabling them to contribute positively to the availability of essential medicines across East Africa but also by having a positive impact on much-needed small business development and job creation.
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