Investing Beyond Borders: Japan's Impact on Global Health Outcomes
Imagine you’re unwell. Your heart is pounding. Sweat trickles down your brow. And each breath comes harder than the last. You rush to the doctor only to find that there’s a wait.
“How long,” you ask.
“It’ll be a while,” the receptionist says. “Come back another day.”
What sounds like a nightmare is a stark reality for over 100 million low- and middle-income people in Brazil. Most depend on the nation’s universal health insurance system, which is plagued by long waits, poor infrastructure, and chronic budget shortfalls. That means millions of Brazilians struggle to get the care they need.
Against that backdrop, Thomaz Srougi opened the first dr.consulta clinic in 2011. The clinic provides primary care at affordable prices in the heart of a São Paulo favela. Today, there are 29 dr.consulta clinics serving over 700,000 people annually across Brazil.
These efforts have lowered medical costs and reduced waiting times. Even walk-in appointments are possible now. As a result, the patient satisfaction rate is approximately twice that of public hospitals.
“Each dr.consulta clinic also has high-quality medical equipment, trained nurses, and qualified doctors,” says IWAHASHI Tatsuro, Deputy Director, Private Sector Investment and Finance Division, Japan International Cooperation Agency (JICA).
“The Company had proven a robust economics in a new subscription model for primary and secondary care, and recently expanded into health plan space, both models enabling more accessibility to private healthcare in Brazil with recurring business models.”
Despite demand for affordable healthcare across Brazil, a market-wide shortfall in startup funding stalled further expansion plans. Venture capital investments in Brazilian startups dropped 51.4% in the first half of 2023 against a tough macroeconomic backdrop.1 And the average contribution to Series D—the fundraising stage for dr.consulta—declined by 14%.
In August 2023, JICA, IDB Invest, and Kamaroopin—a growth equity fund backed by Patria Investments—signed an agreement to provide capital to sustain and grow dr.consulta’s business. Given that a large portion of dr.consulta’s medical equipment is supplied by Japanese companies, JICA will also leverage its networks to further support the company’s mission.
SHIBATA Massanori, CEO of dr.consulta, sees a huge opportunity for his company to rely on advances in Japanese technology in diagnostic equipment and devices, and also apply data analytics and AI to improve health outcomes for dr.consult's patients.
“Through these partnerships enhanced by JICA with Japanese suppliers, we truly believe we will be able to strengthen our potential, contributing to our mission of increasing access to healthcare for Brazilian people,” he says.
Coordinating Action On Global Health Challenges
Deteriorating macroeconomic conditions threaten to undermine investment in healthcare around the world. An estimated 41 governments will spend less on health through 2027 than before the pandemic.2 And nearly 70 more will only invest at pre-pandemic levels. Investment will cover just a fraction of what is needed to sustain essential services, especially in developing countries.
Japan aims to reverse this trend. It has worked towards achieving universal health coverage (UHC) around the world since the 1990s. Its efforts range from financial contributions to fight AIDS, Tuberculosis, and Malaria, to leading health and wellbeing initiatives across Asia and Africa.
At the G7 Hiroshima Summit in May 2023, Prime Minister KISHIDA Fumio doubled down on Japan's efforts, which led to G7's endorsement of the "Impact Investment Initiative (Triple I) for Global Health.”
The initiative will raise awareness of global health challenges, support the development of Impact Measurement and Management, and identify the roles of governments, Development Finance Institutions and Multilateral Development Banks to promote impact investment. Over time, it will improve global access to healthcare and contribute to a restoration of essential health services to better than pre-pandemic levels.
Kishida underscored Japan's commitment including the promotion of Triple I for Global Health at the G7 Health Follow-up event in NY:3 “Japan will steadfastly advance these efforts to achieve UHC and strengthen PPR (prevention, preparedness and response) in close cooperation with diverse stakeholders."
To tackle health challenges, Triple I for Global Health must channel capital to where it’s needed most. Kishida cited JICA’s investment in dr.consulta as a concrete example of how the initiative can do exactly that.
Fighting a Neglected Tropical Disease
According to the World Health Organization (WHO), over 882 million people in 44 countries worldwide remain threatened by lymphatic filariasis (LF)4—a neglected tropical disease (NTD) known as elephantiasis. Transmitted by mosquitoes, the disease affects more than an individual’s health, often impacting their social mobility.
“To control NTDs, collaboration among various partners, including the governments of endemic countries, is essential,” says SASAKI Sayoko, Vice President, Corporate Communications & ESG, at Japanese pharmaceutical company Eisai.
The WHO has been conducting mass drug administration in endemic countries to control LF. Diethylcarbamazine (DEC) tablets—one of three drugs used to treat LF—was in short supply. In response to a request from the WHO in 2010, Eisai decided to manufacture and provide DEC free of charge.
Eisai’s efforts reflect its purpose and commitment to create a social impact. By incorporating impact accounting into their project evaluation and measurement process, Eisai showed how projects create value that starts with people at risk and extends to investors, analysts, and employees. Eisai demonstrated that investments in Global Health are not simply donations; they are part of the company’s long-term strategic vision.
As of October 2023, the company has provided 2.16 billion tablets across 30 countries.5 Yet with an estimated 1.6 billion people worldwide at risk or affected by NTDs, there’s more work to be done.
“Together with the mobilization of domestic financial resources, Japan supports mobilizing financial resources in the private sector through the promotion of impact investments,” Prime Minister Kishida said at the UN General Assembly in September 2023. 6 “Japan will continue to work with developing countries, including emerging economies, to ensure equitable access to medical countermeasures for health emergencies.”
