July 25, 2022

Governing SMEs and Non-Profits in the African Health Sector

Juliet Hinga

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Globally, the healthcare system is faced by many challenges such as inadequate financing, weak health information systems, lack of capacity and infrastructure, etc. For most developing countries, these challenges are related to poor leadership and governance of healthcare organisations.

Good governance serves as a prerequisite for stable, ethical, effective and sustainable growth and performance of organisations. Good governance is not limited to financial management, money issues or corruption; it goes beyond to include other issues such as environmental and social issues. Moreover, good governance builds confidence and trust.

In the recent past, governments in Sub- Saharan Africa have begun making strides in improving the health sector through initiatives such as universal healthcare and encouraging public-private partnerships in health, among others. However, we live in challenging times, and these efforts are being slowed by both external and internal factors. For instance, the Covid-19 pandemic further strained an already struggling healthcare system in Sub-Saharan Africa.

It is against this backdrop that Strathmore University Business School, in partnership with Health Governance International, hosted a thought leadership roundtable for key stakeholders in the Kenyan healthcare sector. This roundtable brought together key players in the health sector such as; representatives of investors in the health sector, professional healthcare organisations, private hospitals, pharmaceutical manufacturers, academia and public-private partnerships. The topic of focus was on SMEs and Non-profit organisations and how effective governance could improve their access to finance, technology and human capital.

Professor Gilbert Kokwaro, Director, Institute of Healthcare Management at Strathmore University Business School noted that the healthcare sector is plagued by many issues, but all is not lost. “With good governance practices, we can transform the healthcare sector, not only in Kenya but across the continent,” he said. He highlighted the main issues facing the sector as; inadequate human resources for healthcare, poor management and governance practices, and inadequate budgetary allocations. “If we are able to efficiently manage the resources currently available, we can alleviate the other two challenges,” he emphasised.

The forum provided a unique opportunity for the stakeholders to examine common constraints and barriers likely to impede the institutionalisation of good governance practices in the private health sector organisations, and how to address these constraints. Further, the discussions aimed to encourage an exchange of insights among experienced thought leaders regarding how effective corporate governance can enable and empower economic growth and enhanced health sector outcomes in Kenya, and ultimately in Sub-Saharan Africa.

Professor Jim Rice, Founder and Vice President of Health Governance International and Moustafa Hunter, President, Health Governance International, spearheaded the discussions. Some of the topics of discussion were: corporate governance, private and public sector investor relations, SMEs’ access to finance and equity investments and how to use smart governance to grow NGO and Faith-Based health systems.

In conclusion, the discussions came up with three critical areas that can help drive the change in the health sector in the country; good governance practices, capacity development and research and development.

Good Governance Practices. Effective governance and governing bodies are critical to strong health systems and better health outcomes. This is why it is important to ensure that good governance is upheld in the public and private health sector governing bodies.

Capacity Development. Investments into capacity development plans that target governance improvement and the advancement of governing boards are essential. They have to be intentional, practical, and board-member customised. It is also critical to incorporate mentorship and governance in the curriculum for health care professionals to help them understand governance best practices.

Research and Development. There is a need for continued research and insight sharing on effective governance models through public-private sector-driven forums.

About the Institute of Healthcare Management

The Institute of Healthcare Management (IHM) continues to play a leading role in research and research capacity strengthening within the Business School.

The Institute is also involved in securing scholarships, PhD training slots, and various ongoing and inception-stage research projects and publications. IHM secures its mandate through close collaboration with several universities, donors and research institutes, both locally and abroad. Learn more about the SBS Institute of Healthcare Management here

Article by Juliet Hinga

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