Govt to Start Support Program for Medical Device Firms Entering African Market; Future Market Expansion Eyed

The Yomiuri Shimbun

1:00 JST, September 1, 2024

The government plans to launch a program to support Japanese manufacturers in developing medical devices for African countries, with the goal of commercializing the devices for the African market, sources said Saturday.

To help solve public health issues in African nations, the government intends to promote the development of products that meet the needs of local markets.

The program encourages companies to expand into markets experiencing rapid economic growth and ensure that adequate medical care reaches people in emerging and developing countries.

The program will support two manufacturers for about four years beginning in fiscal 2024 and include two or more companies in fiscal 2025, according to the sources.

As part of the support, representatives from Japanese manufacturers will visit local hospitals, inspect medical facilities and interview doctors to understand the problems and needs unique to Africa.

The project will also include meetings to exchange opinions with experts. Based on the outcomes of the meetings, the manufacturers will begin developing products and plans to commercialize them and will improve product prototypes while they are being used.

The University of Tokyo will participate in the project as a development support organization. A team of medical, engineering and other experts will support the development of the prototypes, formulate business strategies and coordinate visits to local sites. The Health, Labor and Welfare Ministry plans to work with local health ministries and regulatory authorities.

A medical device manufacturer in Tokyo and a start-up company from Keio University have been selected as the first companies to receive public support. The medical device company plans to develop a device for treating skin diseases, which are prevalent mainly in West Africa, according to the sources.

Japan’s medical device industry had a trade deficit of about ¥1.8 trillion in 2022, a result of losing its market share in radiotherapy equipment and other products amid fierce competition from Western companies.

According to the United Nations, the population in Africa is expected to surge from about 1.4 billion in 2022 to about 2.5 billion by 2050, representing a quarter of the world’s population.

The government aims to increase industrial competitiveness by developing a market that is experiencing rapid economic growth, which is often referred to as the “last frontier.”

Japanese manufacturers excel at producing diagnostic imaging equipment, such as MRI and CT scan systems and endoscopes, but have had difficulty entering the African market.

With many African countries still in the process of developing infrastructure such as electricity, water and sewage systems, there are many cases where products in the Japanese market, which come with high functionality as well as a high price, do not meet the needs of the local market.

Therefore, developing products that meet local needs will be key.

Africa has a high infant and maternal mortality rate. African nations are facing public health problems, with malaria killing more than 500,000 people in 2022 and HIV/AIDS and tuberculosis epidemics spreading.

“We will differentiate our products from those produced by foreign companies that have already entered the African market,” an official of the ministry said. “We’d like to help the first two companies gain a foothold in Africa and add to Japan’s international contributions.”