Top Japanese trading house bets on African healthcare growth

Marubeni Corporation of Japan has invested in Kenya-based Phillips Healthcare Corporation, a pharmaceutical and medical device supplier operating in nine sub-Saharan African countries. It distributes products from over 100 companies worldwide. The deal will result in Marubeni becoming a significant minority shareholder in Phillips to support its continued growth and expansion in the region.

Marubeni views sub-Saharan Africa as a fast-growing healthcare market, driven by rapid population growth – the number of Africans is projected to rise from over 1.5bn today to more than 2bn by 2040 – alongside economic development and shifting lifestyles. These changes are increasing access to medical care and driving demand for advanced treatments for non-communicable diseases, such as lifestyle-related illnesses.

The Japanese trading house, with interests across multiple industries, has been expanding its presence in the African healthcare sector. Beyond its investment in Phillips, Marubeni is collaborating with Fosun Pharma of China to develop a new antimalarial drug intended for use in Africa. Marubeni has also invested in venture capital firm AAIC Investment’s Africa Innovation & Healthcare Fund, which backs digital healthcare startups involved in areas ranging from telemedicine to artificial intelligence for medical diagnosis. AAIC has attracted funding from multiple other large Japanese companies.

In a previous interview with the NTU-SBF Centre for African Studies, AAIC CEO Susumu Tsubaki said these companies see their investments as a way to take advantage of Africa's rapidly growing healthcare industry and potentially sell their products on the continent. He noted that while Japan has advanced medical technologies, most are developed for the domestic market with limited focus on international sales – especially into Africa. With Japan facing an ageing population and declining birth rates, Tsubaki argued that firms must look to emerging markets like Africa for future growth.

Per capita pharmaceutical spending in Africa is six times lower than the global average, with 10 countries accounting for 75% of the total market. While generic medicines are driving growth, demand for innovative treatments is rising as non-communicable diseases become more prevalent. The African pharmaceutical market was valued at US$25bn in 2022 and is projected to reach US$34bn by 2027. Similarly, Africa’s medical devices sector is expanding with revenues expected to reach US$10.03bn in 2025. Cardiology devices are forecast to be the largest segment, valued at approximately US$1.54bn.

 

References

'Japanese investor sees opportunity in Africa’s growing healthcare market', How we made it in Africa, 01 March 2023

'Enhancing pharmaceutical manufacturing capacity in Africa: current scenario and future perspectives for G7 Members', G7 Italia, 14 October 2024

'Agreement with Marubeni Corporation for a strategic growth capital investment', Phillips Pharma Group, 27 January 2025

'Marubeni to participate in a major distributor of healthcare products in Africa', Marubeni Corporation, 27 January 2025

'Medical devices - Africa', Statista, Retrieved on 03 March 2025