Costing model for SA-German nursing exchange programme

Genesis was contracted by the South African Presidency and Georgetown University to conduct a cost assessment of a proposed nursing training and exchange programme between Germany and South Africa.

Germany is actively recruiting trained nurses from South Africa, aiming to address its shortage by tapping into the pool of unemployed nurses in South Africa. To facilitate this process, Germany has asked South Africa to provide a unit price for each nurse deployed, which Germany can use to compensate South Africa accordingly.

However, South Africa is also grappling with its nursing shortage. In light of this, there is an opportunity to find a mutually beneficial solution that aligns the needs and objectives of both countries. By exploring a win-win scenario, Germany’s intention to invest in health workforce development can be leveraged to channel foreign direct investment into the training, deployment and retention of healthcare professionals for the benefit of both nations.

The South African Presidency also sought a model that could generate a unit price per deployed nurse, ensuring a net welfare gain for both countries. Moreover, given the significance and widespread nature of this issue, the model needed to be applicable and accessible to all other member states within the African Union.

Genesis collected data on both the direct and indirect costs related to nurse training, as well as the potential revenue losses that South Africa may encounter due to the departure of skilled healthcare professionals.

Utilising this information, we created a user-friendly Excel model to calculate a customisable unit price per nurse. Our model used a methodology that can be replicated worldwide, providing a turnkey solution for the continent and the global health workforce agenda.

We also prepared a guidance note that outlines how the model can be adapted and highlights the potential utilisation of this evidence in policy development.