Emerging markets have historically been shaped by foundational systems that unlock scale, productivity and integration into the global economy. Telecommunications and aviation have been among the most transformative, changing how people, goods and capital move across regions and borders.
Increasingly, healthcare is emerging as another system capable of delivering a similar economic impact.
The expansion of mobile connectivity and data access has broadened access to markets and opportunity, while investment in aviation infrastructure has supported trade, tourism and regional integration. Together, these systems have reduced friction, expanded participation and accelerated economic activity.
This points to a broader principle: when foundational systems are strengthened, economies can become more productive and resilient. Healthcare should now be recognised as part of this economic infrastructure.
Healthcare is still too often viewed mainly as a cost rather than an investment. That perspective understates its contribution to productivity, resilience and sustainable growth. Investment in prevention, treatment and cures can improve health outcomes while strengthening labour markets, supporting productivity and reducing long-term pressure on public finances.
This is particularly important in emerging markets, many of which have young and growing populations, rapid urbanisation and increasing participation in global markets. These trends create significant opportunities, but they also place pressure on developing health systems.
Without sufficient investment, disease can reduce workforce participation, limit economic output and slow development. Health should therefore be understood not as a drain on resources, but as a driver of human and economic potential.
The returns from health investment are felt at several levels. For individuals, better health can support longer, more productive lives. For economies, it can strengthen employment and productivity. For health systems, prevention can reduce the long-term burden of preventable and chronic diseases and improve resilience.
Early intervention and disease prevention can reduce future pressure on health services while helping people remain active contributors to their communities and economies. Effective treatment can also enable people to recover and return to work and daily life more quickly, where appropriate.
South Africa illustrates both the potential and the challenge. Historical National Health Accounts data recorded current health expenditure at 8.11% of GDP in 2016/17. This figure should be considered alongside the country’s continuing burden of communicable and non-communicable diseases, rising costs and persistent inequalities in access and outcomes.
South Africa has also recorded improvements in life expectancy since 2000. However, translating health spending into better outcomes requires investment to be aligned with population needs, strengthened by effective prevention, reliable primary care and improved access to treatment.
Innovation can amplify these gains. Advances in medical science, digital health and data-driven care are creating new ways to reach more people earlier and use limited resources more effectively. Emerging markets may also be able to adopt some new approaches without the constraints of older systems, although this depends on infrastructure, regulation, skills and affordability.
Realising this potential requires healthcare to be integrated into wider economic planning. Telecommunications and aviation came to be recognised as strategic enablers of growth. Healthcare should be considered in the same way: not simply as a social service, but as a core component of economic infrastructure.
The cost of inaction is significant. Underinvestment can contribute to a rising disease burden, lower workforce participation, slower economic growth and greater long-term pressure on governments and households. The challenge is to ensure that additional investment is effective, equitable and focused on measurable improvements in health outcomes.
Healthcare should therefore be assessed according to its long-term value, not only its short-term cost. Investment in health can improve lives while strengthening the productivity, resilience and future prosperity of emerging markets.
Asgar Rangoonwala is a senior vice-president at Johnson & Johnson EMEA Emerging Markets.