AfricInvest’s Transform Health Fund Closes at $111 Million, Aims to Boost African Healthcare Innovations

AfricInvest’s Transform Health Fund Closes at $111 Million, Aims to Boost African Healthcare Innovations

AfricInvest, a leading pan-African investment platform, has successfully closed its Transform Health Fund (THF) at $111 million, surpassing its initial target. The fund, which is managed in partnership with the Health Finance Coalition (HFC), is set to address critical gaps in health financing and capacity across Africa by supporting innovative healthcare models.

Investors in the fund include major financial institutions such as the International Finance Corporation (IFC), Proparco, Swedfund, and the US International Development Finance Corporation (DFC). Private sector players like Merck & Co., Philips, FSD Africa Investments, and Grand Challenges Canada also contributed, along with philanthropic organisations like the Skoll and UBS Optimus foundations.

This diverse investor pool reflects the growing interest in Africa’s healthcare sector, particularly through blended finance models, which combine public, private, and commercial funding to maximise impact.

Transforming Africa’s Healthcare Landscape

The Transform Health Fund focuses on enterprises delivering proven healthcare solutions, particularly those that serve vulnerable populations. The fund supports these companies by offering debt and mezzanine financing, a business loan model with flexible repayment terms that are aligned with a company’s cash flow.

THF’s strategic investments target healthcare enterprises involved in strengthening local supply chains, driving digital innovation, and delivering affordable healthcare services. These focus areas are crucial to addressing the continent’s health challenges and scaling successful models across Africa.

Ziad Oueslati, AfricInvest’s Founding Partner, highlighted the importance of THF’s approach, stating, “Financing companies in Africa’s health sector through innovative models like the Transform Health Fund is crucial for addressing Africa’s health financing and capacity gaps.”

Martin Edlund, CEO of Malaria No More, echoed this sentiment, emphasising the need for private-sector investment in healthcare as traditional donor funding diminishes and African nations face mounting debt.

Notable Investments in African Healthcare

THF has already committed $20 million to several key ventures. Among these are Africa Healthcare Network (AHN), sub-Saharan Africa’s largest dialysis provider, Insta Products, which manufactures therapeutic foods to combat child and maternal malnutrition, and Kenya’s Lapaire Glasses, an affordable eye care provider.

These investments underline THF’s dual focus on addressing immediate healthcare needs and creating long-term improvements in Africa’s health systems. By supporting companies like AHN and Insta Products, THF is directly contributing to the improvement of healthcare outcomes across the continent.

Closing the Health Financing Gap in Sub-Saharan Africa

Sub-Saharan Africa currently carries 20% of the global disease burden but receives minimal impact investment. THF aims to bridge this gap by backing locally-led enterprises that deliver scalable healthcare solutions. This strategy reflects a broader shift in development finance, moving away from traditional donor funding toward sustainable private-sector models that offer long-term solutions.

As THF continues to grow, it plans to expand its investments in health-tech startups and healthcare delivery models. These scalable solutions are expected to improve access to healthcare and strengthen health systems across Africa. With its successful close and strategic deployment of capital, the fund is well-positioned to drive long-term improvements in the continent’s healthcare sector while fostering the growth of Africa’s emerging health-tech ecosystem.

Leave feedback about this

  • Quality
  • Price
  • Service

PROS

+
Add Field

CONS

+
Add Field
Choose Image
Choose Video