Towards better Understanding

Healthcare Market in Egypt and it's Relation to Internet Growth Based on 1ry market Research

Dr. Osama Ahmed Abou ElKhir, MD,CPHQ, LSSGB, OSHA 4/4/2012

Introduction: Egypt is a country mainly in North Africa, with the Sinai forming a land bridge in Southwest

Asia. Egypt is thus transcontinental, and a major power in Africa, the Mediterranean Basin,

the Middle East and the Arabic world. It is one of the most populous countries in Africa and

the Middle East with over 81 million people. Egypt's Internet users are currently exceeding 30

million users with annual growth reaching 26.01%. Social media is major area of concern for

the consumers; Facebook reported 20 million users from Egypt where it ranks #20 in the

country list per volume.

Egypt's Population:

Age Distribution: Egypt is a young country, Egyptians below the age of 40 accounts for more than 75% of the

entire population; about 30% are under 15 years. The figure (1) shows % age groups of

Egyptians.

Figure 1 Age Group %

10.6

10.5

10.6

11.7

10.8

8.8

6.5

6.4

5.6

5

4.2

3.1 2.3

1.6 1.1

1

Egyptians Age Groups %

Less than 5 years old

5-

10-

15-

20-

25-

30-

35-

40-

45-

50-

55-

60-

65-

70-

Geographical Regions and Density: At 1,001,450 square kilometers; Egypt is the world's 30th-largest country. Population are

concentrated along the narrow Nile Valley and Delta, meaning that about 99% of the

population uses only about 5.5% of the total land area. Egypt's largest urban areas are Cairo,

Alexandria, Giza, Shubra, Helwan, Port Saied and Suez. More than 45% of Egyptians are living

in urban areas. Figure (2) shows population density (people per km2)

Figure 2 Egypt's population density

Family Size: At 2006, average family size was 4.2 individual.

Consumers' Expenditure & Healthcare: Expenditure on healthcare comes as the third sector accounting for 10% of the total income.

55% is spent on "Medical Equipment and Products"

30% is spent on "outpatients service"

And only 15% is spent on inpatient services in the hospital.

Figure (3) and (4) visualize the mentioned information.

Figure 3 %Expenditure per sector

Food and drink 36%

Housing 20%

Services & Health Care

10%

Transports 6%

Clothing, textiles and

footwear 6%

Furniture, domestic equipments & maintenance

4%

Hotels & Restaurants

4%

Education 3%

Miscellaneous goods& services

3%

Beverages and Tobacco

3% Communications

3%

Recreation & culture

2%

Expenditure per sector (%)

Medical Equipment

and Products

55%

outpatients service

30%

Inpatient services in the

hospital 15%

%Distribution of expendture on Healthcare

Figure 4 %Distribution of expendture on Healthcare

Top #of patients seen at outpatient per specialty per year in Public &

Central Hospitals: Patients are encountered for: Internal medicine, Pediatric, dermatology/ venereal disease,

ophthalmology and Isolation/fever more than 2 million times each.

0

1000000

2000000

3000000

4000000

5000000

6000000

# En

cou

nte

rs

# visitors seen at outpatient per specialty per year

Figure 5

Top # of patients seen at Causality area per specialty per year in

Public & Central Hospitals: Encounters for internal medicine are also the highest in volume.

0

500000

1000000

1500000

2000000

2500000

# En

cou

nte

rs

#patients seen at Casuality area per specialty per year

Figure 6

# Of Licensed physician per year with trending and distribution: There are more than 180,000 licensed physician currently registered in Egypt at

governmental, general and private sectors. Almost 80% are working in governmental

hospitals, 18% are working in private practice and the rest in general sector.

0

20

40

60

80

100

120

140

160

180

200

200920082007200620052004200320022001200019991998199719961995199419931992

No

. in

Th

ou

san

ds

No. of Physicians

Governmental 81%

General Hospitals

1%

Private 18%

Liscinced Physician distribution / place

Figure 7

Figure 8

Top places with the highest # of licensed physicians:

0

10000

20000

30000

40000

50000

Directoratesof the

governoratesof Health

Affairs

UniversityHospitals

Hospitals andeducationalinstitutions

GeneralAuthority for

HealthInsurance

PoliceHospital

Cabinet of theMinistry of

Health

Therapeuticinstitutions

Figure 9

Egypt and Internet Economy:

Internet Supply: Egypt's International Bandwidth increase over the period 2001-2010 with an average annual

growth rate of 105%

Figure 10

Internet Demand: During the last decade (2000-2010), Egypt's Internet users boomed from almost half million

users to about 23 million users; the internet penetration jumped from almost 1% to about

30%. 86% of the users are accessing through broadband connection.

Currently there are, estimated, 30 million users for internet in Egypt

Figure 11

Figure 12

Internet and Mobility: Egyptian are now shifting for usage of mobile services for internet connection (USB modems,

Mobile Phone connection, Tablets, …). The growth rate in USB modem subscribers increase

from 2009 to 2010 202%. At 2010, Mobile Phone internet users represent 34% of total

internet users and accounts only for 11% of total mobile subscribers. As of 2010, the total

mobile phones those are ready to access internet through 3G network are 16 million

handsets; however only half of them (8.6 million) are actually using mobile phone internet

connection. This market is potential for growth by more attraction and promotion from

service providers.

Figure 13

Figure 14: Proportion of mobile internet users

Intentionally Blank