A new innovation is addressing procurement constraints, making drug stock-outs and shortages in Rwandan hospitals less common.
Viebeg Technologies is a venture capital-backed Health Tech company that helps healthcare facilities procure supplies in real time. It uses artificial intelligence (AI), to manage the supply chain (from shipping to distribution, warehousing and inventory management) to ensure healthcare facilities have the exact medical supplies they need.
The Rwanda Innovation Fund, partly financed by the African Development Bank, invested in Viebeg’s data-driven logistics platform.
Tobias Reiter, Viebeg Technologies Co-founder and Chief Executive Officer, says the firm’s AI-driven medical procurement platform directly connects healthcare providers with manufacturers. This eliminates middlemen and brokers from the value chain, which can result in cost savings of up 40 percent for customers.
“We saw that many medical facilities did not have the right supplies; and also from reports that in Africa, in every five minutes, people are dying from conditions that could be prevented if we had the right medical supplies,” Reiter noted.
The company was established in 2018 and works with many healthcare facilities in Rwanda. According to Alex Musyoka who is also its Chief Commercial Officer, the company’s Co-Founder, it has treated over 2 million people with Viebeg products. It has served over 500 facilities and is making inroads in East Africa. Musyoka stated that the company intends to expand across Africa.
Many healthcare facilities in Rwanda are praising Viebeg because they can now get essential products for their fields at affordable prices. One example is the Kivu Specialist Clinic, which was established by Dr. Amol Kalkarni, one among three maxillofacial surgeons from Rwanda.
Specialists who treat injuries and defects in the mouth, jaws and teeth need modern equipment. However, they are often difficult to find in Africa.
Dr. Amol stated that Viebeg helped his practice acquire an orthopantomogram (a panoramic dental scan of the upper and bottom jaws) to enhance its cutting-edge capabilities. He added: “In four months, the clinic will have fully paid for the new OPG machine. We are one the best-equipped clinics of Rwanda. Viebeg helped me establish my clinic, and now I am confident having Viebeg as my partner to maintain it.”
Ejo Heza Surgical Centre in Kigali also needed a replacement anesthesia machine after their old one broke down. They didn’t have the funds to buy a new one. “As Viebeg offers special payment terms for products, Ejo Heza became Viebeg’s client and acquired the new equipment within three weeks. This has allowed our facility to continue saving lives,” says Dr. Dominique Savio Mugenzi, Orthopedic Surgeon and Managing Director at Ejo Heza.
“Thanks to Viebeg’s service, we are now procuring our medical supplies and equipment through the platform, and this has resulted in a significant reduction of procurement costs and stock-outs of medical supplies,” adds Mugenzi.
Mukando Cesarie is a patient who has experienced the power of a well-equipped healthcare facility enabled by Viebeg’s innovation. “I was very sick, but with the gynecological machines here, the doctors were able to finally diagnose the problem. After four surgeries, I am now feeling much better. I am thankful for these services,” she said and expressed satisfaction with the attention she received at the Kigali-based Best Care Hospital in July 2022. She had previously undergone a 10-hour surgery at a local hospital. However, her condition worsened due to the inability of the facility to accurately diagnose her.
Viebeg’s annual revenue increased from $80,000 to $180,000 six months after the funding from the Rwanda Innovation Fund, representing a 125 percent growth. Musyoka predicts that the figure will reach $2.5 million by 2022.
The funding has not only helped increase revenues but also allowed the company to train its employees and access working capital. It also enabled the company’s ability to hire more workers.
The Rwanda Innovation Fund was supported by the African Development Bank with $30 million. The Bank’s support aligns with the country’s National Information Communication Infrastructure (NICI) III Plan, which underscores the importance of ICT in improving service delivery to citizens.
Dr. Abdu Mukhtar, the Bank’s Director for Industrial and Trade Development, said: “Digital innovation can transform sectors, but it needs investment. Viebeg is an excellent example of what can happen when there is the right combination of innovation, entrepreneurship and financial backing. It is remarkable that Viebeg has seen the Rwanda Innovation Fund, which was initiated by Rwanda’s government and partially funded by the African Development Bank, play a significant role in its development. Local investment in local businesses has had transformative local results. It is a partnership model that can play well in other markets.”
Distributed by APO Group for African Development Bank Group (AfDB).
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Source: african.business
