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EF: Could you elaborate on the priorities for Vitality in 2024?
EK: Our priority is to continue positively disrupting access to healthcare on the continent so that more people can access quality healthcare. When we spoke last year, we were present in 5 countries, and now we are in 7: Nigeria, Zambia, Mozambique, Kenya, the DRC, Ghana and Tanzania. This showcases the commitment and advancement we have been having across Africa, and there are opportunities to continue working in other African regions. The countries where we operate require deep understanding and close engagement with local stakeholders. We have adapted our model for each market to ensure we meet their needs.
Africa is experiencing rapid growth, with its population projected to reach 2.5 billion by 2050, nearly doubling in size. Sub-Saharan Africa's wealth has been increasing faster than the global average since 2000. Consumer spending is expected to rise from $680 billion in 2008 to $2.2 trillion by 2030, driven by a significant 3.7% annual increase in private consumption since 2010. Africa's growing middle class is transforming into one of the largest consumer markets, and private consumption is the primary driver of GDP growth in Sub-Saharan Africa. The Democratic Republic of Congo (DRC) is the fastest-growing market in Africa, with its population expected to grow from 92.85 million in 2020 to 220 million by 2050. This growth underscores the DRC's significant focus on health and wellness initiatives.
Leaving South Africa aside, health insurance penetration in African countries is low and varies between 1-3%, and we want to be part of changing that. We have identified that there is demand and that people want more from their health insurance. Africa now has a double burden of disease with an increase in non-communicable diseases (such as diabetes, mental illness and heart disease) as well as more traditional communicable diseases (infectious diseases such as HIV and malaria). We have the opportunity with Vitality to provide a solution to make people healthier.
One of the key trends identified is that over 50% of Malaria deaths worldwide take place in the African countries where Vitality Health International is present. There is a high burden of Malaria in Africa, and this has a significant impact on morbidity and mortality, especially in young children. Malaria also impacts development and employers through higher absenteeism rates.
Our products are focused on employer groups, and we interact with companies that understand that having health insurance for their employees is a positive benefit for that company as it improves productivity, reduces absenteeism, and is positive for the company and the individual. Our products seek to make people healthier and enhance education on the importance of employee well-being and health insurance.
EF: Could you elaborate on how you partner with stakeholders in each country and what you look for in a partner?
EK: For us, selecting the right partners for each country is important. We work with key partners in each country who have deep experience in the market and aim to build long-term relationships with aligned values and vision, allowing us to grow in each country by understanding the local needs.
Once we select a partner and a broker in a country, we work with the companies where we first understand the needs of the overall employee base. After an assessment of the needs of each company according to their workforce has been concluded, we provide the insights, expertise and tools companies need to build a healthier workforce. We conduct a wellness programme day, where we educate the employees of the companies on how to develop healthier habits and how positively this can impact them, such as preventing diseases. We must work closely with partners to stay well-communicated and provide them with a robust portfolio to ensure employee wellness through ongoing education.
With Vitality, we aim to reduce the burden of disease across Africa. Our partnership with the Africa-run initiative to eliminate malaria on the continent, "Goodbye Malaria", is progressing well and aligns with WHO's target to reduce malaria in Africa.
EF: Could you elaborate on the role of technology and how you are harnessing data to drive healthcare delivery?
EK: At Vitality, we are at the forefront of digitalization and leveraging the data and technology available to provide a tailored healthcare experience. Through our solutions, we are improving healthcare access by online tracking wellness. Members can access a rewarding programme that uses positive reinforcement to educate and create healthy habits. Our approach focuses on tracking behaviour and delivering education on health and prevention. We believe in a shared-value healthcare approach where we partner with companies to offer rewards to our members for healthy behaviours, such as MTN, Vodacom, Uber, Uber Eats and Jumia. We see this driving positive healthy behaviours on the continent.
Africa has the youngest population globally, with 60% under the age of 25. By 2050, 40% of the world's youth will be African. Internet usage is rapidly expanding, with Ghana and Mauritius surpassing global averages. This demographic is crucial for driving digital health initiatives. Our user base is young, mostly between 24-34 years old. This, and the fact that they are tech-savvy, puts us in a position where we can use technology to provide them with better value.
Our rewards programme varies depending on the region. We have a variety of reward partners, such as MTN, Vodacom, Uber, Uber Eats, and Jumia, where vouchers can be redeemed. It is interesting to see what our user base outside South Africa is most inspired by, such as mobile data, online shopping, e-hailing and food delivery services. For us, adapting to the local needs is crucial to deliver a quality service.
EF: Is there any final message you would like to send?
EK: I am proud of the work we have been doing with our team, as we are growing and starting to see great results, with a high engagement from our user base. We want to expand our user base in the markets where we are to improve access to quality healthcare for our members. At Vitality Health International, Africa, we are passionate about improving access to high-quality healthcare through our products. We have an excellent team focused on bringing the required product and tech innovation to the African continent, while simultaneously being part of addressing the disease burden on the continent.
