Top challenges in healthcare procurement and how to overcome them

1. Executive summary

Healthcare procurement is becoming a strategic priority across the Southern African Development Community (SADC) as healthcare systems scale to meet rising demand for diagnostics, laboratory equipment, medical devices and IVD solutions.

The broader Africa medical devices market is expected to grow by USD 2.68 billion during 2026–2030 at a CAGR of 8.1%; while South Africa’s clinical diagnostics market is projected to reach USD 2.3 billion by 2030 (Source: Grand View Research). These trends are expected to increase procurement volumes and sourcing complexity across SADC healthcare systems.

As demand rises, procurement functions are under growing pressure to improve cost efficiency, supplier reliability and product availability across hospitals and laboratories.

What is driving procurement transformation in SADC healthcare

• Rising demand for diagnostics
  Expanding need for testing and lab capacity. 
• Growing medical device demand
  Higher procurement volumes across facilities.
• Infrastructure expansion
  New hospitals and lab investments increase sourcing needs.
• Cost pressure
  Healthcare systems face tighter budget efficiency demands.
• Supply continuity needs
  Reliable product access is becoming critical.
• Digital procurement shift
  Systems are moving toward smarter procurement models.
• Regional procurement opportunity
  SADC can benefit from scale and coordination.

Key solution levers

• Digitalisation
  E-procurement and digital tendering
  Real-time order and inventory tracking
  Better transparency and compliance

Impact: Strengthens access, expertise and supply Continuity

• Partnerships
  Public-private collaboration models
  Global suppliers and local distributor networks
  Procurement capability development

Impact: Strengthens access, expertise and supply continuity

• Data & analytics
  Demand forecasting and spend visibility
  Inventory optimization
  Supplier performance tracking

Impact: Supports better planning and lower stockout risk

• Regionalisation
  Pooled procurement across SADC
  Regulatory alignment
  Shared sourcing strategies

Impact: Unlocks scale, efficiency and better pricing power

2. Procurement landscape & structural challenges in SADC

Procurement systems across SADC are evolving in response to rising healthcare demand, although opportunities remain to strengthen efficiency, visibility and supply continuity across hospitals and laboratories.

Procurement landscape & structural challenges in SADC

Key barriers shaping regional procurement systems

• Supply chain disruptions
• Regulatory & approval delays
• Supplier market limitations
• Data & digital gaps
• Skills & capacity gaps
• Fragmented procurement systems
• Infrastructure constraints
• Import dependence
• Financial constraints

Why It Matters
These systemic challenges directly affect healthcare outcomes across SADC:

• Supply continuity: In Botswana, nationwide shortages of medicines and medical supplies in 2025 disrupted service delivery and delayed non-urgent procedures.
• Cost & access pressure: In Zimbabwe, delays in radiotherapy capacity at Parirenyatwa and Mpilo Hospitals highlighted procurement and implementation bottlenecks in specialised care.
• Planning & visibility gaps: Weak forecasting and inconsistent consumption data continue to affect procurement planning across public health supply systems.
• Regional opportunity: SADC Pooled Procurement Services (SPPS) reflects a growing push toward coordinated sourcing, better pricing and stronger procurement resilience.

Case snapshot: Zimbabwe public health supply chain optimization

Initiative:
A national programme in Zimbabwe, supported by the Global Fund, helped strengthen procurement and supply systems for HIV medicines and diagnostics.

What changed:

• Improved forecasting and quantification processes.
• Supplier performance tracking / Data-driven ordering.
• Enhanced warehousing and distribution systems.

Impact:

• Order fulfilment within 90 days improved from ~42% to over 90%.
• Stockouts of key commodities declined significantly.
• Expired inventory values reduced over time.

Why it matters:
The case highlights how structured procurement processes, stronger performance tracking and better use of supply chain data can improve product availability and operational continuity.