SOURCE: Frost & Sullivan

March 15, 2011 01:30 ET

Private Sector Expansion Drives Growth of the West African Clinical Laboratory Instrumentation Market, Finds Frost & Sullivan

CAPE TOWN, SOUTH AFRICA--(Marketwire - March 15, 2011) - In many developing countries, laboratory services have been neglected due to chronic under-investment. Furthermore, the high burden of infectious diseases and emergence of drug-resistant malaria have increased the strain on laboratories. Establishing and maintaining an accurate and reliable laboratory service are complex and expensive processes. The provision of high-quality laboratory services is dependent on a well-organised network of laboratories with well-trained personnel, good infrastructure and competent management.

In Ghana and Nigeria, investment in laboratory systems has risen substantially in the last 5 years. Many initiatives have been undertaken to improve laboratory infrastructure. This has led to the expansion of the laboratory network in west Africa and upgrades in the existing laboratories.

New analysis from Frost & Sullivan (http://www.drugdiscovery.frost.com), The Clinical Laboratory Instrumentation Market in Key West African Countries, finds that the market in west Africa was valued at $53.2 million in 2010 and estimates this to reach $84.3 million in 2016. This research focuses on Ghana and Nigeria. Segments included in this research are clinical chemistry, immunochemistry, haematology and molecular diagnostic analysers.

"In Ghana and Nigeria, investment in laboratory services have risen considerably in the last 5 years," notes Frost & Sullivan Healthcare Research Analyst Jolize Gerber. "There has been a significant push towards automation within the laboratory instrumentation market."

There is high demand for automated analysers in public and private laboratories. End users in the clinical laboratory instrumentation market have a positive perception towards automation and believe that automated tests are more reliable.

"Many initiatives towards the expansion of laboratory networks and upgrade of laboratory facilities have been undertaken in Nigeria and Ghana in recent years," remarks Gerber. "Growth within the private sector and the high burden of infectious disease will also continue to drive growth in this market."

The high burden of infectious diseases and rise in the incidence of cancers and kidney- and heart-related diseases are fuelling the expansion of this market. Furthermore, growth of the private sector is also promoting market prospects.

There is an upsurge in the number of private medical laboratories in Ghana, especially in the Kumasi metropolis. A trend within the country is that medical entrepreneurs are venturing into the business of laboratory services, creating employment opportunities for professional technicians and contributing to good-quality healthcare delivery.

However, Nigeria and Ghana suffer from a lack of skilled personnel to maintain equipment and train customers on their usage. Furthermore, limited training opportunities and migration of skilled workers are causing a loss in intellectual capital.

Despite the relatively high level of graduates, insufficient technical knowledge about specific laboratory systems remains a problem. The result has often been frequent equipment malfunction and extended breakdown periods.

"Offering training and maintenance services to end-users can assist laboratory groups to overcome the challenge of equipment malfunction," advises Gerber. "In addition the government is spending funds on training and retention of qualified laboratory personnel, factors which are all expected to drive growth."

The Clinical Laboratory Instrumentation Market in Key West African Countries is part of the Drug Discovery Technologies Growth Partnership Services programme, which also includes research on the following markets: Healthcare Industry in Angola, Healthcare Industry in Mozambique, Healthcare Industry in Ghana and Clinical Diagnostics Market in East Africa. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

If you are interested in more information on this study, please send an e-mail to Christie Cronje, Corporate Communications, at christie.cronje@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

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The Clinical Laboratory Instrumentation Market in Key West African Countries
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