Tech in Africa
Medical Credit Fund (MCF), Africa’s only debt facility dedicated to the health sector has completed a €32.5 million fundraise for its second MCF II fund. This second financing round will expand its presence and support healthcare providers across sub-Saharan Africa where the focus is primarily on sub-Saharan healthcare services such as malaria prevention and treatment, maternal and childcare. This round caters to expanding the ‘Cash Advance’ a fully digital loan product that has grown exponentially over the past two years.
The funding round was anchored by the Dutch Ministry of Foreign Affairs that provided the first €7.5 million equity investment this January to cater for the loan demands in the height of Covid-19. Also participating in this funding round are CDC Group €10 million, FMO €7.5 million, Swedfund €5 million, and Philips €2.5 million.
MCF will further benefit from a guarantee facility by the U.S. International Development Finance Corporation initiated by the Health Finance Coalition while supporting U.S. President’s Malaria Initiative and USAID’s Center for Innovation & Impact. MCF uses catalytic capital through blended finance from both public and private sources while targeting €80 million in growth in the coming years.
MCF II qualifies in the 2X Challenge where its funding enhances access to capital for healthcare businesses that are gender smart. The 2X Challenge is a commitment by G7 DFIs to mobilize capital with the intent to help women businesses in developing markets access leadership opportunities, quality employment, and products and services enhancing their economic participation and inclusion.
