Business and Economy

Transform Health Fund raises $50m for scaling proven innovative healthcare models in Africa

The Transform Health Fund (THF), a blended-finance fund for growing effective and creative healthcare solutions in Africa, has been unveiled by FSD Africa Investments, AfricInvest, Malaria No More, and Health Finance Coalition (HFC). THF has commitments totaling $50 million, which reaches its desired size for its first close.

The fund intends to address the significant healthcare finance gap in Africa while establishing a robust healthcare ecosystem that raises the accessibility, affordability, resilience, and quality of care for patients with limited financial resources. Supply chain transformation, creative care delivery, and digital innovation are the three key focuses for servicing low-income patients.

With an emphasis on East, Southern, and Francophone West Africa, THF’s investments will be made in nations throughout sub-Saharan Africa. The goal of this initiative is to help meet the continent’s urgent demand for high-quality, reasonably priced healthcare.

THF’s investment plan specifically names women’s health services as one of its primary investment goals. Some of its investments target women-led firms and serve an expanding number of women by being designed with a strong gender lens.

Chief commitment Officer of FSD Africa Investments, Anne Marie Chidzero, stated: “FSDAi is pleased to announce its catalytic capital commitment in the ground-breaking THF fund. We take pride in the fact that our capital investment in this fund’s tranche made it possible for additional corporate and commercial investors to join. A top goal for FSDAi is working in collaboration with AfricInvest, HFC, and the other fund participants to strengthen the African healthcare system, particularly in this period of environmental stress and unpredictable climate disasters.

The UK is thrilled to partner with FSDAi to be a catalytic investor in the Transform Health Fund, according to Louise Walker, Head of Private Sector and Capital Markets Department, FCDO.

This creative alliance combines public and private funding, which will raise more money and be essential for increasing access to the affordability of healthcare for low-income individuals across the continent. Since we know that maternal and newborn mortality in Sub-Saharan Africa is significantly higher than SDG goals, I am especially happy to see that investments will target women-led companies and services will also focus on women.

AfricInvest will be crucial in leveraging a variety of support throughout many regions of the continent, providing financing for businesses in the health sector, aiding African local markets in both scaling up their own healthcare systems and developing regional champions.

It is crucial that we fight to close Africa’s enormous health finance gap as healthcare demands rise and health financing needs expand, according to Martin Edlund, CEO of Malaria No More and Executive Director of the Health Finance Coalition. The Transform Health Fund is essential in generating funding for large-scale healthcare solutions.

The U.S. International Development Finance Corporation (DFC), U.S. Agency for International Development, IFC, Swedfund, FSD Africa Investments, Netri Foundation, Anesvad Foundation, Grand Challenges Canada (with funding from Global Affairs Canada), Chemonics International, and MCJ Amelior Foundation are a few of THF’s partners. Merck & Co., Inc., also known as MSD outside of the United States and Canada, is another. The fund is anticipated to draw more investors that are committed to advancing healthcare in Africa.

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