The Health Finance Coalition (HFC) has successfully raised $50 million for the Transform Health Fund (THF), a pan-African initiative managed by AfricInvest. This milestone marks the beginning of investments in groundbreaking healthcare models that aim to enhance access, affordability, resilience, and quality of medical services throughout Africa.

The THF is a collaborative effort between the Health Finance Coalition and AfricInvest, uniting commercial, public, and private donors. Major contributors include Royal Philips, Merck & Co., Inc. (known as MSD outside the United States and Canada), the U.S. International Development Finance Corporation (DFC), the International Finance Corporation (IFC), Swedfund, FSD Africa Investments, Grand Challenges Canada (funded by Global Affairs Canada), the U.S. Agency for International Development (USAID), Netri Foundation, Anesvad Foundation, Chemonics International, and MCJ Amelior Foundation.

Introduced at the U.S.-Africa Leaders Summit in Washington, D.C., in December 2022, the THF is an innovative blended-finance fund aimed at supporting local-led health supply chains, care delivery systems, and digital solutions across Africa. AfricInvest, a prominent investment platform involved in private equity, venture capital, and private debt across the continent, will manage the fund alongside the Health Finance Coalition, a consortium of leading global health funders hosted by Malaria No More.

Read also : Africa Launches First Integrated Drone Transport Solution for Medical Supplies

The THF’s primary focus is to finance enterprises that strengthen health system resilience and preparedness throughout the continent. The Transform Health Fund will provide debt and mezzanine financing to scale high-impact health enterprises that serve vulnerable communities, while also ensuring risk-adjusted returns for investors. The fund is anticipated to address critical financing and capacity gaps within African healthcare systems, which have been exacerbated by the challenges of COVID-19 and climate change. Additionally, the THF aligns its efforts with the Sustainable Development Goals and the achievement of Universal Health Coverage.

Africa currently faces a significant health financing gap, with just 1.6 percent of annual impact investments targeting the healthcare sector on the continent, despite it being home to 20 percent of the global disease burden. However, this presents an opportunity for innovative solutions to support and transform healthcare in Africa. AfricInvest, with its extensive investment experience, wide-reaching networks, and presence across Africa, will provide the necessary funding to scale critical innovations, fostering a more resilient health ecosystem. The THF will specifically focus on investments in three key areas serving low-income patients: supply chain transformation, innovative care delivery models, and digital innovation.

Read also : United Kingdom Visa Payment Changes for Sierra Leone Applications

Martin Edlund, CEO of Malaria No More and Executive Director of the Health Finance Coalition, emphasized the importance of the Transform Health Fund, stating, “COVID-19 and the mounting pressures of climate change have exposed critical gaps and opportunities for innovation in health financing and delivery in Africa. The Transform Health Fund will play a critical, catalytic role in scaling healthcare solutions that will save and transform lives.”

The commitment and support from organizations like IFC, Merck & Co., Inc., DFC, Philips, Grand Challenges Canada, USAID, and others highlight the significance of the Transform Health Fund in bridging gaps and achieving transformative impact in African healthcare. By fostering a resilient healthcare ecosystem and expanding access to quality care, this initiative will contribute to improving the health and well-being of millions across the continent.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard