Investment firm AfricInvest and Health Finance Coalition successfully close deal on $111 million Transform Health Fund, aiming to fortify healthcare systems across Africa.

The Transform Health Fund, a groundbreaking blended-finance initiative, has surpassed its original target of $111 million. This fund aims to address Africa's significant health financing and capacity shortfalls, a critical issue given that Sub-Saharan Africa accounts for 14% of the global population and 20% of the global disease burden, yet only 1.6% of annual impact investments are directed towards Africa's healthcare sector.

The Transform Health Fund, a collaboration between AfricInvest and the Health Finance Coalition, provides debt and mezzanine financing to scale high-impact health enterprises that serve vulnerable populations. Recipients of this funding include The Africa Healthcare Network (AHN), a dialysis chain in Sub-Saharan Africa, Lapaire Glasses, a network of optical shops in East and West Africa, and Insta Products, a producer of ready-to-use therapeutic food for malnourished children and mothers. While specific details about the companies receiving $20 million in commitments were not provided, it's clear that the fund is making a tangible impact.

Notable investors in the Transform Health Fund include Royal Philips, IFC, Swedfund, DFC, Proparco, Merck & Co., Inc., FSD Africa Investments, Grand Challenges Canada, Impact Assets Inc., GHIC, Ceniarth, UBS Optimus Foundation, Skoll Foundation, Chemonics International, Anesvad Foundation, Netri Foundation, and USAID. The US International Development Finance Corporation (DFC) is listed among the investors in the USD 100 million blended finance fund aimed at improving healthcare for low-income patients in Africa.

Partnering with private sector leaders has been proven effective for scaling locally led healthcare solutions, according to Ziad Oueslati, Founding Partner at AfricInvest. He emphasized that financing companies in Africa's health sector through innovative models like the Transform Health Fund is essential to closing Africa's health financing and capacity gaps.

The successful closing of the fund enables THF to expand investments in locally led healthcare supply chains, care delivery, and digital solutions across Africa. The Transform Health Fund focuses on strengthening healthcare systems across the continent, a crucial step towards improving the health outcomes for millions of people.

The Transform Health Fund was publicly recognized during the U.S.-Africa Leaders' Summit in December 2022, highlighting its importance in addressing Africa's health financing challenges. Martin Edlund, CEO of Malaria No More and Executive Director of the Health Finance Coalition, emphasized that the Transform Health Fund demonstrates that health enterprises serving vulnerable communities are investable.

In a time when private investment in impactful healthcare is considered more critical than ever due to stagnant donor funding and unsustainable debt burdens for African countries, the Transform Health Fund stands as a beacon of hope. It's a pioneering initiative in its field, designed to scale up proven and innovative healthcare models, and it's making a real difference in the lives of millions across Africa.

Investment firm AfricInvest and Health Finance Coalition successfully close deal on $111 million Transform Health Fund, aiming to fortify healthcare systems across Africa.