A panel on African economists and policy drivers during the Evidence for Development Conference in Nairobi on May 7, 2025.A section of economists and policy drivers from across Africa have sounded an alarm over rampant financial wastage undermining the continent’s healthcare growth.
They highlighted the urgent need to plug fiscal leakages, curb public sector wastage, and take bold innovative steps toward financing the continent’s healthcare development.
Their calls come at a time when foreign aid flows, notably from the United States, have been shrinking exacerbating the need for homegrown solutions to solve some of the ongoing challenges.
Speaking during the Evidence for Development Conference in Nairobi on Wednesday, Presidential Advisor on Health Financing in Kenya Daniel Mwai pointed to the fragmentation of services and vertical health programmes as key barriers to efficient health financing.
“We can cut the cost of healthcare in Africa by 40 percent if we reorganise and plan well in its delivery,” Dr. Mwai stated, calling for integration and multi-skilled healthcare workers. He urged countries to focus on preventive healthcare as compared to curative healthcare.
IEA-Kenya CEO Kwame Owino during the Evidence for Development Conference in Nairobi on May 7, 2025.Institute of Economic Affairs (IEA-Kenya) CEO Kwame Owino emphasised the need for fiscal discipline and efficient resource utilisation in Africa's healthcare systems.
“Citizens across East Africa are reaching their limits, the protests last year in Kenya were a clear sign. We must get the most from the taxes by prioritising high-impact public goods and reducing wastage through corruption. Governments must spend conservatively in areas with the greatest public demand.”
His remarks were reiterated by Economic Planning Principal Secretary Patrick Zimpita, Malawi who highlighted a troubling trend where some leaders faced public backlash for spending more money on travel and ceremonial expenses to launch development projects than the actual value of the projects themselves.
He pointed out that such actions not only undermined public trust but also raised concerns about fiscal responsibility.
Zimpita emphasized the need for efficient use of national resources to prioritise impactful development in the health sector.
Senior Policy Analyst at the African Institute for Development Policy (AFIDEP) Jackson Otieno proposed innovative options such as health taxes, and robust anti-corruption measures that could unlock up to 5–10 percent in savings.
He also highlighted the need for expanding health insurance coverage, integrating technologies like Artificial Intelligence (AI) to minimise waste, and strengthening financial oversight.
Homabay Health CEC Roselyn Omollo address during the Evidence for Development Conference in Nairobi on May 7, 2025.Representing subnational leadership, Homabay County Executive Committee member Roselyn Omollo shared practical strategies the county is using to reduce delivery costs and improve health outcomes at the grassroots level.
These include a community-led approach to healthcare, engaging citizens to take responsibility, and boosting enrollment into the Social Health Authority (SHA).
“When we talk about medical insurance, the question is always about efficiency and effectiveness,” Omollo said.
“In Homa Bay county, we are reducing costs and increasing coverage by adapting local solutions that resonate with our communities.”
Experts called for homegrown solutions, stronger stakeholder engagement, and strategic investments in health-focused technology and financing models.
“There is a need to unlock the potential of new technology,” Executive Director of the African Economic Research Consortium (AERC) Professor Murinde said.
“The adoption of AI, big data, and machine learning is key in identifying best practices and reducing inefficiencies.”
As countries face pressure to deliver quality healthcare amid shrinking budgets, experts agreed that bold reforms, partnerships, and innovation should take center stage.
The conference is co-convened through a strategic
partnership between the African Union Development Agency (UDA-NEPAD), African
Institute for Development Policy (AFIDEP), and Science for Africa Foundation (SFA
Foundation), along with leading institutions in the science, data, research,
and innovations space in Africa and beyond.
