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When a government bets on a healthtech startup to fix its medicine supply chain

Written By

  • Deji Ogunye
  • Mara Hansen Staples

What happens when a country stops waiting for a perfect solution and decides to build one? This is a story about that bet — and what it produced. 

In the mid-2020s, a small African country faced a crisis that was quiet but deadly. Its Central Medicine Stores (CMS) — the backbone of national medicine supply — had collapsed in slow motion. Regional warehouses had been non-functional for 4-5 years. There were no effective assets to move medicines between regions. Orders took more than 4 weeks to reach facilities. And nobody, anywhere in the system, had real-time visibility of what was in stock or what was about to expire. 

Patients were going without medicines and paid unaffordable prices not because the medicines did not exist, but because the system built to deliver them efficiently had broken down. 

The government’s response was unconventional. Rather than waiting for a multilateral tender or a donor-funded redesign, it partnered with a leading health-tech startup and drew on its Sovereign Wealth Fund to finance a rapid, 2-year transformation with an estimated cost of approximately $5M. The goal was not a study or a pilot. It was a functioning supply chain — built, staffed, operational and sustainable. 

Sovereign wealth funding and a startup created the governance and operational foundation for change 

The transformation rested on 2 interconnected pillars. The first was legal: converting the CMS from a public establishment into a state company, creating the governance and operational independence needed to move at pace. The second was operational: reorganizing the CMS as a modern central purchasing, storage, and distribution center, creating a control tower model as a medicines and health products hub,capable of serving public health facilities nationwide. 

The mission was clear. Deliver a best-in-class operating model that is efficient, cost-effective, and sustainable — ensuring access to life-saving medicines while enabling job creation. 

A diagnostic-first, phased rollout turned structural failure into a functioning supply chain in 12 months 

The team began with rigorous field assessment: visiting sites, documenting gaps, and mapping the true state of infrastructure, distribution, and operations. What they found was a system that had not merely underperformed — it had structurally failed. 

From that diagnostic, a phased rollout was designed. Facilities were prioritized by patient reach and readiness. Each cohort came with clear expected outcomes: refurbished storage assets, procured equipment, security frameworks, quality management systems, and trained staff with defined KPIs and standard operating procedures. 

Within 12 months, the team had revised the national medicines formulary, implemented SAP for end-to-end integration, introduced route planning and cold chain management, and deployed point-of-sale systems for live inventory tracking across the network. 

A year in, every headline metric was met guided by global best practice

One year into implementation, the results were striking. Medicines and consumables availability averaged 90%. Hospital medicines fulfilment within the first cohort reached above 80%. Order-to-delivery time fell from 4 weeks to between 72 – 96 hours. And for the first time, the system improved per-patient data visibility. 

Political disruption ended the programme — but the blueprint is too valuable to leave on the shelf 

The programme ended prematurely, caught in political upheaval. But its legacy is the approach itself — a proof of concept that government-led, startup-partnered, asset-backed supply chain transformation can work, and can work fast. 

The questions it leaves behind are important:  

  • As health systems reimagine medicine supply chains, how can models like this become part of the mainstream conversation?  
  • Which markets present the biggest opportunities to experiment with new approaches like this today?  
  • Where the appetite exists, how can we surround creative government leaders and innovations with the support to forge new pathways? 

 

The blueprint exists. The results are documented. The next step is learning from both what worked — and what the political and structural risks that ended it tell us about what still needs to change. 

 

Salient Advisory works with governments and development partners on supply chain strategy, cost assessment, and operational transformation across Africa. Interested in discussing this example? Get in touch!

 

 

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