2023-06-08 17:18:00
(Agence Ecofin) – Launched in December 2022, the Transform Health fund, placed under the management of AfricInvest and supported by a consortium of investors and financial institutions, obtained financing as part of its first closing, to support innovations in the health sector in Africa.
The Transform Health fund, which targets healthcare companies in sub-Saharan Africa, raised $50 million in its first closing. The operation was announced on Wednesday June 7 by AfricInvest and the Health Finance Coalition, which both manage this fund officially presented in December 2022 at a summit of American and African leaders in the United States.
The Transform Health Fund will fund innovations that will improve health systems on the continent. It will invest in the form of loans and mezzanine financing to develop high-impact healthcare companies that improve the quality of care, while providing investors in the fund with risk-adjusted returns.
The Transform Health Fund will target investments in three critical areas on the continent, namely: supply chain transformation, innovative care delivery models and digital innovation. It will support health systems facing financing and capacity gaps.
Several international financial institutions, foundations and donors participated in the mobilization of this $50 million. Among them is the International Finance Corporation (IFC), which contributed $15 million. Sergio Pimenta, vice-president of this institution has also specified on his LinkedIn page that the Transform Health Fund will play an important role in areas where health needs are high.
According to the Health Finance Coalition, Africa faces a financing gap in the health sector, with only 1.6% of annual impact investments targeting the health sector on the continent. On top of that, the private health sector in Africa remains highly fragmented and dominated by companies with limited resources.
Chamberlain Moko
1686258944
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