The Rise of HealthTech Startups in North Africa – Challenges, Opportunities, and Strategic Pathways

Mohamed Aziz Elhif

Healthcare strategist and innovation lead working at the intersection of technology, entrepreneurship, and policy in emerging markets.

March 29th, 2025

Executive Summary: This market report examines the burgeoning HealthTech sector in North Africa, focusing on Tunisia, Morocco, and Egypt. Driven by increasing demand for accessible healthcare, this region is witnessing a surge in innovative startups leveraging AI, telemedicine, and digital solutions. This report identifies key regulatory, financial, and infrastructural challenges, while outlining actionable strategies for North Africa to emerge as a competitive hub for digital health innovation in the MENA region and beyond. By connecting innovation to institutional reform, we aim to enable the next generation of inclusive, tech-powered healthcare solutions.

Aziz.elhyf@gmail.com | Linkedin | +216 28097660

© 2025 Mohamed Aziz Elhif. All rights reserved.

1. Introduction

The HealthTech sector in North Africa is experiencing rapid growth, driven by increasing demand for accessible healthcare services, the proliferation of digital health tools, and a surge in innovative startups. Countries like Tunisia, Morocco, and Egypt are at the forefront of this transformation. This report provides an in-depth analysis of the region’s HealthTech landscape, highlights key challenges, and proposes actionable strategies to position North Africa as a global digital health innovation hub.

1. Market Landscape and Key Actors

B1. Regional Startup Ecosystem

HealthTech startups are expanding across North Africa:

• Tunisia: Home to over 90 certified HealthTech startups, Tunisia stands out as a regional leader. Companies like Cure Bionics are developing prosthetics using 3D printing and AI.
• Egypt: Startups such as Chefaa are revolutionizing e-pharmacy services by providing medication delivery and chronic disease management tools.
• Morocco: Platforms like DabaDoc are enhancing access to healthcare by connecting patients with doctors via telemedicine.

These startups are leveraging AI, logistics, and mobile health platforms to address systemic inefficiencies and improve healthcare access.

B2. Technology Trends

Emerging trends in North African HealthTech include:

• AI-driven diagnostics: Supporting faster and more accurate disease detection.
• Telemedicine: Expanding access to care in underserved rural areas.
• Interoperable Electronic Health Records (EHRs): Facilitating seamless patient data exchange.
• Mobile health platforms: Targeting rural populations with low-cost solutions.
• Digital supply chains: Streamlining pharmaceutical logistics through e-pharmacy ecosystems.

B3. Ecosystem Enablers and Partnerships

Key enablers driving growth include:

• Startup accelerators: HealthCare Innovation, Flat6Labs and Plug & Play Morocco provide funding and mentorship.
• International donors: Organizations like GIZ and USAID support capacity building.
• Local institutions: The Monastir Faculty of Medicine and Institut Pasteur foster research collaboration.

1. Strategic Challenges and Structural Barriers

C1. Regulatory Complexity

HealthTech startups face fragmented regulatory frameworks. For instance:

• In Tunisia, despite the establishment of the ANMPS (National Agency for Medicines and Health Products), there is no dedicated digital health law.
• Regulatory delays discourage private investment and slow innovation deployment.

C2. Funding and Market Readiness

HealthTech accounts for less than 5% of total VC funding in North Africa. By comparison:

• MENA-specific HealthTech VC funds have raised $0.9 billion since 2020.
• Egypt has introduced “golden licenses” to streamline approvals for qualified investors.

However, limited health-focused venture capital expertise and unproven revenue models remain barriers.

C3. Infrastructure and Workforce Limitations

Challenges include:

• Limited technological equipment in rural hospitals.
• Healthcare professionals often lack digital literacy, hindering adoption of advanced tools.

1. Strategic Recommendations

D1. National HealthTech Strategy

Governments should prioritize:

• Simplifying regulations through fast-track approval processes.
• Standardizing EHR protocols to ensure interoperability.
• Co-designing AI validation pathways with academic partners.

D2. Financing and PPP Acceleration

Adopt blended finance models combining donor funds, government grants, and private investment:

• Public-private partnerships (PPPs) with pharmaceutical companies could emulate successful collaborations like Singapore’s SingHealth initiative.

D3. Education and Capacity Building

Integrate HealthTech into medical curricula while expanding digital skills training across hospitals:

• Finland’s biomedical programs serve as a model for fostering innovation through education.

D4. Data Governance and Infrastructure Investment

Governments must modernize IT infrastructure while ensuring GDPR-aligned data governance standards to build patient trust:

• Estonia’s national health data strategy offers a blueprint for secure data sharing.

1. Foresight: 2025–2030 Outlook

By addressing these challenges, North Africa can emerge as a HealthTech leader in the MENA region by 2030 through:

• Institutionalizing AI frameworks for healthcare.
• Scaling telemedicine with reimbursement models.
• Building regional data-sharing alliances.
• Attracting international research cooperation.