Somalia welcomes first health insurance service

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Saturday February 3, 2024

 

Mogadishu (HOL) – Baraka Insurance has launched Baraka Aaliye Care, the first-ever health insurance service in Somalia, aiming to make healthcare affordable and accessible across the capital. This pioneering program, revealed on Friday, partners with multiple hospitals and clinics to offer various coverage levels suited to individual financial situations and health needs.

The service was unveiled in a ceremony attended by government officials, leaders from the banking sector, hospital administrators, and scholars, signalling a collaborative effort towards improving healthcare in Somalia. Health Minister Ali Haji and Sakariya Ibrahim, the head of the program, highlighted the government’s support and the simplicity of the enrollment process, respectively, emphasizing the initiative’s potential to improve health outcomes in the nation significantly.

Somalia, grappling with poverty, political instability, and a fragmented health sector, presents a challenging backdrop for such a pioneering initiative. With a GDP per capita of just US $315 and a population of approximately 16 million, the country has one of the lowest human development indices globally. The health sector, primarily run by the private sector due to a long-standing absence of effective governmental structures, faces numerous challenges, including lack of regulation, staffing, and geographical disparities in service delivery.

The Baraka Kaaliye Care project is part of the broader Private Sector Partnerships for Health (PSPH) project, supported by the Swiss Development and Cooperation. Baraka Insurance signed an MoU with the Swiss development agency to complete the project in January 2022. This project aims to strengthen the health system by enhancing private healthcare financing and service delivery, improving access to quality and affordable healthcare for all Somalis, including the most disadvantaged.

With a budget of CHF 4’750’435 ($USD 5,479,484) from the Swiss government, the PSPH project targets private sector businesses within the Somali health sector, aiming to impact 150,000 Somalis through health financing interventions and 500,000 patients monthly through service delivery networks. The expected outcomes include the development of viable healthcare financing mechanisms and the establishment of private healthcare service provider networks that are scalable and effective.

By introducing The Baraka Kaaliye Care, Baraka Insurance is filling a critical gap in Somalia’s healthcare landscape but also setting a precedent for private sector involvement in the nation’s health system strengthening efforts.

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