Health Officials Seek Dollars in Medical Tourism, Locals Face Care Deficit

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The federal government has turned its attention to an unlikely export sector: healthcare. Framed as a national economic revival tool, medical and wellness tourism is being branded as a “premium service export.”

The backdrop is over 700 million dollars that is believed to be leaving the country annually as Ethiopians seek healthcare abroad. Roughly 10,000 patients a year go abroad, spending an estimated 10,000 dollars each, revealing an unmet local demand and the erosion of public confidence in domestic health systems. By launching the initiative “Come Home to the Origin of Healing,” federal officials hope to reposition Ethiopia from being a source of outbound patients to a destination for continental and diaspora medical travellers.

The underlying ambition is to recapture foreign currency, stem the outflow, and inject vitality into a moribund health system.

“Those who can afford to travel get treatment," said Ilubabur Bune, a lead executive for medical services at the Ministry of Health. "But many are left untreated or pushed into bankruptcy after paying abroad. There should be no reason for someone to die here for lack of treatment.”

Central to the plan is a new online portal that will serve as a one-stop gateway for international patients, bringing together booking, payment, service ratings, and follow-up care to streamline bureaucracy and increase accountability.

The roadmap outlines a comprehensive set of reforms, including expedited procurement of advanced medical equipment, cross-border portability for health insurance, and an enhanced role for public-private partnerships in developing integrated healthcare cities. Regulators have announced plans to streamline licensing, investment approvals, and customs procedures for imported medical supplies. Health officials' pitch is to build capacity at home and raise standards.

"Ethiopia can become a destination for healthcare services, rather than a source of outbound medical tourists," said Ilubabur.

According to him, the push began in the private sector and is now being adopted at the policy level.

“Medical and wellness tourism is not a luxury for us," Ilubabur told Fortune. "It's a necessity.”

The focus, he said, is to curb outbound tourism by allowing patients to receive advanced care at home, rather than flying abroad for surgery or diagnosis.

There are no internationally accredited hospitals in Ethiopia, a fact that Ilubabur readily acknowledges. The Ministry plans to grant university hospitals greater financial autonomy and enhance their capacity. Through the new roadmap, at least 24 hospitals (16 private and eight public) are expected to pursue international accreditation. Eight hospitals are on track to secure such recognition.

St. Paul Hospital, one of the country’s leading public health institutions, has begun offering kidney transplants at a fraction of the 30,000 to 40,000 dollars spent by Ethiopian patients overseas. Private hospitals such as Ethio-Istanbul now perform high-end surgeries at costs approaching one million Birr, while others, like Axon, are establishing themselves as centres for stroke care.

“We're working on building the capacity of doctors and specialists,” Ilubabur said.

Public-private partnerships (PPPs) are also being promoted to address the capacity gaps that limit the government’s ability to meet growing demand. St. Paul Hospital, which recently added three new buildings, is earmarked for this model. Countrywide, 75 hospitals are currently under construction.

“We want to excel in having the biggest hub in Africa,” Ilubabur told Fortune.

The roadmap identifies several institutions as centres of excellence, each with its own clinical speciality. Alert Hospital is recognised for trauma care; St. Paul Hospital for infertility and transplants; and St. Petros Tertiary Hospital for infectious diseases. Tikur Anbessa Teaching Hospital is preparing to become a centre of excellence in haemato-oncology and cardiac services. Following its transition to financial autonomy, the Hospital has restructured these departments with a new focus.

“We're working on capacity building," said Andualem Deneke, chief executive director. "Right now, the sector has more than 20 cancer and cardiac specialists, supported by specialised nurses. Cancer patients should not be treated like others. They need dedicated staff and modern equipment."

At Alert Hospital, Tesfaye Gudeta, CEO of Competence & Human Resources Management and Development, stated that the institution is constructing an eight-storey trauma tower as part of a multibillion-Birr project.

“We're specialising in trauma care, but government support is vital,” he said.

Alert currently employs six trauma specialists and is investing in further capacity-building efforts.

The roadmap also envisions the construction of nine internationally accredited speciality centres, each targeting areas from cardiology and oncology to organ transplantation and diagnostics. In parallel, federal health officials plan to establish wellness tourism cities, leveraging geothermal springs, mineral-rich waters, and highland environments to attract international patients and visitors. A new National Medical & Wellness Tourism Board will oversee the regulation and promotion of the sector, including investment oversight.

Despite the grand plans, problems, including fragmented follow-up care, characterised by poor coordination between hospitals and healthcare systems, remain.

However, health officials remain optimistic. They plan to halve the number of patients seeking treatment abroad, cutting foreign outflows by half from 100,000 annually. The authorities hope to generate up to half a billion dollars in annual revenue from medical and wellness tourism.

According to Ilubabur, social health insurance for civil servants will be rolled out soon, with healthcare providers covered under the scheme set to start in September this year. These measures are linked to broader health financing reforms. Community-based health insurance has become mandatory for all taxpayers, helping hospitals cover treatment expenses. Previously, hospitals relied on reimbursement after providing care, often leaving them financially strained. Under the new framework, hospitals will receive 50pc of their budgeted costs upfront each year, potentially easing liquidity pressures and sustaining services.

A new health law requires agencies that connect patients with services to secure certification from the Ministry of Health in addition to a trade license. These intermediaries will be formally registered and tiered (silver, gold, or platinum) based on service quality and compliance, to shield patients from exploitation and poor standards.

“This will bring accountability and cut out unnecessary treatments,” Ilubabur said. "Agencies will be trained to help locate specialists locally. Patients do not need to travel unless by choice."

The Ethiopian Healthcare Federation, which represents 25 member organisations and more than 25,000 associates, has welcomed the roadmap. Its President, Markos Feleke, who is also the CEO of Washington Medical Centre, called the roadmap a milestone for private sector involvement.

“Investors in the Federation would love to be part of outsourcing and PPP models to make services more efficient,” he told Fortune, while stressing the need for independent accreditations.

According to Markos, who is also the founder of ABH Partners Plc, patients often look abroad when local facilities fail to meet expectations on fees or quality.

“Local hospitals must be accredited and fees competitive if the roadmap’s goals are to be achieved,” he said.

Markos also urged the government to facilitate the smooth implementation of PPPs and provide financial backing. He called for banks and regional lenders to prepare loan guarantees and for the government to offer assurances to de-risk investments. His facility, Washington Tertiary Hospital, is under construction at a cost of 240 million dollars. Despite an eight-month delay, the first phase, comprising 110 beds, is expected to open next year, with a second phase expanding to 500 beds. The facility aspires to excel in cancer treatment and diagnosis, including the provision of the first private radiation therapy service in Ethiopia.

“This will boost the medical industry’s level,” Markos told Fortune.

He argued that Ethiopia could learn from India’s model, where public hospitals have been fully outsourced to private operators, but said such a transition would take time. PPPs have already begun at St. Petros Hospital in laboratory diagnostics and imaging, and talks are underway at St. Paul’s. Challenges remain, including a lack of frameworks, experience, and high costs that can discourage private partners.

Desalegn Tegabu (PhD), a public health expert who worked for the Health Ministry for a decade, argued that private hospitals are better positioned than public ones to drive medical tourism due to their service quality and capacity. He said that autonomy for university hospitals places responsibility on universities, compelling them to generate their own income.

“They will change from service givers to service sellers,” he said, calling it a crucial step toward financial sustainability.

According to Desalegn, many public hospitals operate at a loss, making speciality care prohibitively expensive. He argued that centres of excellence should diversify and reference international standards. In his view, accreditation will be easier for private facilities than for public ones.

“The PPP model is the best way to empower the private sector and boost medical care,” he said, urging long-term incentives for investors.

He also called for a transparent fee framework, as public hospitals remain heavily subsidised and lack sustainable financing. Without reforms, diplomats and tourists will continue to travel to neighbouring Kenya for check-ups and treatment, undermining the health authorities' ambitions.

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