Legal Discussions with Vengai Madzima: Diaspora in Private Health and Medical Services in Zimbabwe
NewZimbabwe.com invited Mr. Vengai Madzima, the Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal) to discuss with us legal issues that affect Zimbabweans living in the diaspora. The discussions are of a general nature and those seeking specific legal advice should contact their lawyer.
Reporter: Welcome back Mr. Madzima, this week we want to discuss the potential of the Health industry in Zimbabwe. Is Zimbabwe ideal for investment in health services?
VM: Well my view has to be taken from the well-documented negative economic growth suffered by our country from around the year 2000, which resulted in the mass exodus of health professionals to ‘greener pastures’, coupled with the deterioration of some of our health institutions and equipment, against an increasing demand for health services, which may partly be resulting from lifestyle changes of a significant segment of our populace.
This, from a private sector perspective, has opened up massive opportunities for the diaspora or foreign investors to invest in the Zimbabwe health industry.
On a macro–scale, the National Health Strategy 2021 – 2025 outlines the areas open for investment with the Government, outlining possible total budgetary requirements for the industry ranging from 5 to 7 billion United States Dollars. From a micro and private investment perspective, it highlights or serves as a guide to the many areas private health services can complement the strategic policy on health in achieving its overarching objective ‘to improve the quality of life of all Zimbabweans.’
Reporter: Private health services are normally exorbitant and out of reach of ordinary people, is it moral to push for such investment or is it better to lobby the government to improve health delivery services?
VM: I do not believe that the two should be viewed from opposing ends but as complimentary with the aim being the health consumer benefits from the best services.
I agree that currently private health services are expensive to many and in my opinion, they should always be viewed in a complementary role to the public health services. Their proliferation will ultimately reduce the cost of the service if we are to liberally apply the laws of economics. More so, there is a high possibility that there will be an increase in efficiencies and delivery of world-class services as there will be more competition. It may also reduce the demand for cheaper public health services, allowing those who cannot afford to get quicker and better services, reducing the emergency services demand on the government and allowing for more investment in infrastructure and equipment.
I say this speculatively and I am sure some may disagree with this proposition.
On the question of morality question, having exported or suffered a massive brain drain of highly qualified professionals to various jurisdictions and not being naïve to assume that they will return and not seek to profit from their various experiences or expertise, isn’t it also moral or logical that the country benefits and leapfrogs in health advancement from the various experiences gained by some of the diaspora who are working in first world institutions with enormous budgets for medical research and development and further, to benefit from the learnt modern ways in tackling some diseases coupled by technology transfer by the diaspora practitioners in those jurisdictions.
It is obvious that this will come at a cost to the willing consumer.
Reporter: What areas in health services are available for investment in Zimbabwe?
VM: Well, the sector itself is huge and there are various areas that private investors may look at investing. I will attempt from the top of my head to name but a few. Investors may look at investing in ambulance services, both ground and air, medicines manufacture or wholesale importation of approved medicines, medicine distribution companies or pharmacies, medical equipment supply or rental, medical diagnostic services, mortuary services, medical laboratories, suburban and city hospitals, biological waste management services, the list is endless.
It is really a question of identifying the area the investor wants to participate in.
Reporter: What steps should one take to invest in this sector?
VM: The steps ultimately depend on the area the private investor has opted to invest in. Since the private business will be ultimately providing public services, there are regulatory approvals that will have to be obtained for the industry one has opted for, be it opening a pharmacy or starting up a private clinic. Different investments models may require different steps and for some who may be foreigners to Zimbabwe, they may be the preliminary requirements of registering the investment with the Zimbabwe Investment Development Agency.
Reporter: Thank you Mr. Madzima for your time.
VM: Thank you.
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Vengai Madzima is a Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal) in Zimbabwe and can be reached at [email protected] or www.mcmlegal.co.zw.