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Medical oxygen

Medical oxygen is essential for regular and critical care. We are partnering with Kenyan oxygen supplier Synergy to increase access to locally produced oxygen as part of the East Africa Programme on Oxygen Access (EAPOA).

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Current agreement

Our
partners

  • PATH
  • Clinton Health Access Initiative
  • UNITAID logo

The challenge

Public health 

Low blood oxygen, or hypoxemia, is a serious problem caused by issues with blood flow or breathing. It can occur with anaemia, heart disease, tuberculosis, asthma, COPD, and pneumonia, and is a major risk during surgery, labour and delivery. 

In low- and middle-income countries (LMICs), one in six children under five and one in five newborns admitted to hospitals suffer from hypoxemia. Also, 15% of pregnant women may face life-threatening complications needing emergency oxygen. Hypoxemia can increase the risk of death by up to seven times, causing over one million preventable deaths yearly in these countries. 

The only treatment for hypoxemia is medical oxygen. It is deemed essential but is underfunded. Up to 56% of healthcare facilities in LMICs struggle with limited or no oxygen supply. Access to oxygen in East Africa is even lower; reports indicate that in Kenya and Tanzania, fewer than 40% of public healthcare facilities have oxygen consistently available. 

Market situation

In LMICs, hospitals and clinics often buy oxygen in small amounts, which means they pay more because they can’t get bulk discounts. They usually buy oxygen in cylinders and have to transport it over long distances, which adds to the cost. This process is expensive and inefficient, making it hard for health facilities to afford enough oxygen. As a result, demand remains limited discouraging investment in better oxygen production and distribution systems.

The COVID-19 pandemic highlighted the need for better oxygen systems. While many initiatives have focused on raising funds and improving oxygen storage and distribution, there has been less emphasis on increasing a sustainable oxygen supply. This broader focus is essential to ensure that oxygen systems are strong and reliable, not just during pandemics but at all times. 

Projected impact

By 2029:

261,000

Additional patients receiving oxygen supplied under this volume guarantee

39,000

Additional critically-ill patients receiving oxygen

$3.19m

Savings for procurers, including hospitals and regional health authorities

The product

Medical oxygen can be manufactured either in liquid or gaseous form. Because it takes up far less space than gas, liquid oxygen is easier to store, transport, and deliver at scale – making it more cost-effective.

On delivery to the health facility, liquid oxygen is stored in on-site tanks, piped through centralised piping and vaporised at the patient’s bedside.

Synergy will manufacture liquid oxygen at its new state-of-the-art facility near Kilifi County, Kenya, which is currently under construction, as part of the EAPOA’s efforts to boost regional production of medical-grade liquid oxygen.

The partnership

MedAccess provided a volume guarantee to Synergy Gases Ltd.

Synergy has agreed to provide medical oxygen at a ceiling price of KSH 165 (US$ 1.27) / liquid litre ex-works from its production facility in Kilifi County. This is an estimated reduction of more than 25% vs. current market prices.

The EAPOA partners are providing a range of targeted support. Funded by Unitaid, with contributions from Canada and Japan, the programme uses a blended financing model that combines catalytic grant funding with market-shaping tools such as volume guarantees, provided by MedAccess where appropriate. The implementation of the project is led by CHAI in collaboration with PATH and the governments of Kenya and Tanzania.

Impact projections

MedAccess’ first agreement with a local manufacturer focused on a regional market will increase access to a lifesaving health product whilst strengthening a fragmented, volatile market.

Lives changed

We project that hospitals and health facilities will be able to provide access to oxygen for an additional 261,000 over the four-year lifespan of this agreement. Of these people, we project that 39,000 will be critically ill and in urgent need of oxygen.

Money saved

We project that procurers – including local health authorities and individual hospitals – will benefit from cost savings of more than $3 million.

Markets shaped

We project that this guarantee will improve supply security for oxygen in Kenya and across East Africa by strengthening local manufacturing, increasing competition in the market and improving transparency in procurement of oxygen.

How we calculate the impact of this agreement

Lives changed

Patient outcomes are estimated based on the proportion of patients in hospitals receiving oxygen expected to be in critical care.

Money saved

Direct savings are estimated based on current available market prices for liquid oxygen in Kenya and Tanzania.

Markets shaped

We work with partners, including donors, procurers and Ministries of Health, to track changes in health markets where our investments are supporting access to products. We monitor for changes to policy, procurement practices and supplier movement, all of which affect markets and contribute to the long-term sustainability of impact.

Sustainable Development Goals (SDGs)

SDG 3

SDG 3

Ensure healthy lives and promote well-being for all at all ages
SDG 3 targets:
SDG 10

SDG 10

Reduce inequality within and among countries
SDG 10 target:
SDG 17

SDG 17

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
SDG 17 targets:
  • SDG 3

    SDG 3

    Ensure healthy lives and promote well-being for all at all ages
    SDG 3 targets:
  • SDG 10

    SDG 10

    Reduce inequality within and among countries
    SDG 10 target:
  • SDG 17

    SDG 17

    Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
    SDG 17 targets:

SDG 3

3.1

By 2030, reduce the global maternal mortality ratio to less than 70 per 100,000 live births


3.2

By 2030, end preventable deaths of newborns and children under 5 years of age, with all countries aiming to reduce neonatal mortality to at least as low as 12 per 1,000 live births and under-5 mortality to at least as low as 25 per 1,000 live births


3.4
By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being

3.8

Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all

SDG 10

10a

Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements

SDG 17

17.6

Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism


17.7

Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed


17.10

Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda


17.17

Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Key contacts

If you would like more information about this agreement, please reach out to our key contacts.

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