Determinant of Healthcare Investments in Sub-Saharan Africa

Abstract

This study examines the determinants of healthcare investment in Sub-Saharan Africa from 1999 to 2017 involving 35 SSA countries. The econometrics methods used in the study involves the fixed effect and random effect models, and the generalized method of moments (GMM-SYS). The results of the static model showed that GDP per capita, population and inflation positively affect investment in SubSaharan Africa, while debt service as a share of GDP negatively impacts healthcare investment in SSA. On the other hand, the GMM results showed that GDP per capita, population, growth, inflation, and debt service as a share of GDP have a negative relationship with healthcare investment, while infant mortality rate has a positive influence on healthcare investment in SSA. The study recommends that for SSA to improve the health sector and reduce incidences of malaria, HIV, tuberculosis, diarrhoea, and other diseases, it is important for both the governments and private investors to raise the level of healthcare investments to pay for better healthcare services, build more hospitals, clinics, and other healthcare facilities; and better finance research and development in the health sector.

Keywords: healthcare investment, per capita, population, debt service and infant mortality rate.