The African Development Bank Group (AfDB) has said the Economic Community of West African States (ECOWAS) investments must be tailored to the needs of Regional Member Countries.
Dr. Akinwumi Adesina, President, AfDB, disclosed this in his keynote address at the 22 Ordinary Session of Assembly of Health Ministers of ECOWAS, on Friday in Abuja.
Adesina said the investment needed must have a clear focus on strengthening resilience to future health emergencies and promoting sustainable and equitable health financing solutions.
The News Agency of Nigeria (NAN) reports that the Ordinary Session of West Africa Health Organisation (WAHO) is an annual meeting of the 15 member states to brainstorm on health-related issues and possible solutions.
It reports that the 22nd session of the Assembly of Health Ministers of ECOWAS, is focused on discussing how the region can surmount future pandemics.
Adesina was represented by Dr. Beth Dunford, Vice President for Agriculture, Human and Social Development at the AfDB.
He requested the ECOWAS Health Ministers to provide objective economic assessment that stressed the need for renewed efforts to ending the pandemic as a path to economic recovery.
He said the Bank aims to increase its investments in health infrastructure to support this strategy, using range of instruments involving diverse partnerships.
“The portfolio will include investment projects, results-based financing, risk-sharing instruments to leverage private sector resources, debt and equity investments in private companies and promotion of innovative sources of finance, such as diaspora funds.
“Filling the financing gap for health infrastructure will require mobilising finances from the private sector, development finance institutions and diaspora groups.
“Across Africa, only 10 to 20 per cent of investment in health service delivery infrastructure is mobilised by the private sector, due largely to high levels of investment risk.
“The limited coverage of health insurance and the dominance of out-of-pocket expenditure in health financing also make it more difficult for investors to secure a financial return.
“As a result, private sector investments in health infrastructure have been concentrated in brownfield investment to expand existing hospitals,” he said.
Adesina added that Foundations such as the Bill and Melinda Gates are projected to play a growing role in the financing of health services in Africa and would be key partners for the Bank.
He noted that there is also potential for mobilising funding from diaspora communities and associations, either directly or through instruments such as diaspora bonds.
“Since the late 1980s, India has used fiscal and non-fiscal incentives to stimulate diaspora investment in health services and nine of the top 15 hospitals in India have been set up through such investments,” he said.
Adesina added that the Bank was poised to play a critical role as a health infrastructure financier on the continent.
“We draw on our core expertise in infrastructure development and working with other development partners in support of national health system. – strengthening plans and in support of enhancing African health system resilience.
“Input from Ministers in the Bank’s 54 regional member countries, development partners and civil society is expected to strengthen the Bank’s Strategy for Quality Health Infrastructure in Africa,” he added.
Adesina said that COVID-19 was a wake-up call on the central role of health systems and infrastructure for inclusive economic growth.
“The picture of pandemic impact isn’t yet fully clear, not fully quantified and is still unfolding.
”However, it offers hope that with increased health systems and infrastructure development, the continent may weather the storm of future pandemics.
“Let us change the narrative on the health systems in Africa. The Bank cannot do it without your ownership and support,” he said
Adesina advised them to validate and endorse the strategy highlighted here for the Bank to provide the much needed support to the continent in healthcare infrastructure.
NAN reports that Guinea and Mali were absent at the 22nd Ordinary Session of West Africa Ministers of Health. (NAN)