Healthtech continues to transform healthcare delivery across Africa, attracting significant investor interest. In 2024, African healthtech startups raised over $500 million, reflecting global confidence in the continent's potential to lead healthcare transformation. Despite this momentum, fundamental healthcare challenges persist. In Tanzania, patients in public hospitals often face wait times of up to five hours for basic care, while private healthcare costs remain two to three times higher than the average Tanzanian can afford. With only 8-15% of the population covered by health insurance, access to quality, affordable care remains out of reach for millions.
That's where Medikea comes in.
As a tech-enabled hybrid healthcare provider, Medikea is redefining healthcare access by combining telemedicine with a network of cost-effective outpatient clinics. It offers patients care 25 times faster than public hospitals and 50-70% more affordable than private healthcare.
We believe in Medikea's vision, execution, and potential to transform healthcare in Tanzania and beyond. That's why Madica is proud to invest $200,000 in Medikea as part of their $600,000 pre-seed round, alongside Catalyst Fund, Baobab Network and develoPPP.
The Healthcare Challenge
Tanzania’s healthcare landscape presents a compelling opportunity through its stark contrasts. The country sees approximately 60 million outpatient visits annually, with spending projected to reach $287.3 million by 2025 and a market volume of $392.9 million by 2029. Despite this growth, public hospitals remain overstretched, leading to prolonged wait times averaging up to five hours. Meanwhile, private healthcare is two to three times more expensive than public options, making it inaccessible for most Tanzanians.
Only 32% of Tanzania’s population has any form of health insurance, with a mere 1% enrolled in private health insurance schemes. This leaves millions vulnerable to out-of-pocket medical expenses, reinforcing the need for affordable, scalable healthcare solutions.
An Innovative Care Model
Medikea's unique approach to healthcare delivery stood out due to its hybrid model that integrates telemedicine with low-cost physical clinics, closely replicating the consumption behaviour of the average African for critical services like healthcare. Their first clinic in Dar es Salaam demonstrates the power of this approach by delivering medical services 25 times faster than public hospitals and 50-70% cheaper than traditional private care while serving 1,000 patients monthly.
By digitising the entire patient journey, from lab services to pharmacy operations and follow-ups, Medikea has created a sustainable model that makes quality healthcare accessible and affordable, reducing fragmentation and improving continuity of care. This emphasis on affordability, accessibility, and efficiency in addressing the gaps in traditional healthcare systems aligns seamlessly with Madica's focus on innovative, scalable solutions tailored to underserved markets.
What impressed us most was their ability to prove the financial sustainability of their model. Their first clinic broke even within 12 months, demonstrating that high-quality, affordable healthcare can also be commercially viable. Medikea is also the first telemedicine provider in Tanzania to secure partnerships with major insurance companies - Jubilee Insurance, Assemble Insurance, and GA Insurance.
A Strong Team with a Clear Vision
Medikea's founding team demonstrated a deep understanding of the healthcare landscape in their target market, coupled with a proven ability to implement and scale operationally complex solutions. CEO Elvis Silayo, COO Desire Ruhinda, CTO Munir Said, and Chief Medical Officer Peter Lima combine deep healthcare expertise with strong operational execution. Their track record of leveraging technology to overcome infrastructural challenges, combined with a strong commitment to creating a patient-centric approach, provided Madica with confidence in their leadership and execution capabilities.
As Elvis puts it: "We predict one of the most valuable digital health companies in the world will come from Africa. This is because Africa has the largest disease burden, a very low doctor-to-patient ratio, and insufficient financial resources. To tackle this problem, technology is the most important tool that African healthcare systems can rely upon to fight disease burden, expand access to care and reduce costs, all while improving the quality of life and increasing the life expectancy. The opportunity to build a company that has the potential to shape the future of Africa's healthcare systems is what excites us the most."
The Bigger Picture
Beyond Tanzania, markets with similar healthcare challenges, including Zambia, Ethiopia, DRC, and Mozambique, present significant growth opportunities for Medikea’s expansion. With a growing demand for affordable, high-quality healthcare across East and Central Africa, these markets offer a natural next step for scaling Medikea’s hybrid model.
With this investment, Medikea plans to expand to five new locations, serve over 200,000 patients, and introduce innovative healthcare financing solutions to improve accessibility. Their combination of technology innovation and operational excellence positions them to become a leading healthcare provider in East Africa, ensuring more people receive the care they need.
Healthcare should not be a privilege limited to those who can afford it, it should be a right, accessible to all. Medikea’s vision and execution demonstrate that technology and smart delivery models make affordable, high-quality care possible. We are thrilled to support Medikea as they work toward expanding access to healthcare across Africa.
