Grace Ashiru
AfricInvest and the Health Finance Coalition (HFC) have announced the final close of the pan-African Transform Health Fund (THF), a pioneering blended-finance initiative designed to strengthen healthcare systems across Africa by scaling up proven and innovative healthcare models managed by AfricInvest, a prominent pan-African investment platform specializing in private equity, venture capital, and private debt, in collaboration with the Health Finance Coalition—a collective of leading global health funders—the Transform Health Fund has surpassed its original target, raising $111 million through investments from commercial entities, public institutions, and private donors.
Among the notable investors are Royal Philips, the International Finance Corporation (IFC), Swedfund, the U.S. International Development Finance Corporation (DFC), Proparco, Merck & Co., Inc. (known as MSD outside the U.S. and Canada), FSD Africa Investments, Grand Challenges Canada (funded by Global Affairs Canada), Impact Assets Inc., the Global Health Investment Corporation (GHIC), Ceniarth (the family office of Diane Isenberg), UBS Optimus Foundation, Skoll Foundation, Chemonics International, Anesvad Foundation, Netri Foundation, and the U.S. Agency for International Development (USAID). The successful closing of the fund enables THF to expand investments in locally led healthcare supply chains, care delivery, and digital solutions across Africa.
It provides debt and mezzanine financing to scale high-impact health enterprises that serve vulnerable populations, while offering risk-adjusted returns to its investors.
To date, the Transform Health Fund has committed $20 million to the following companies:
- Africa Healthcare Network (AHN), the largest dialysis chain in Sub-Saharan Africa, which provides high-quality, affordable dialysis and preventative care.
- Lapaire Glasses, a network of over 60 optical shops delivering accessible and affordable eye care products and services across six countries in East and West Africa.
- Insta Products, a producer of ready-to-use therapeutic food for malnourished children and mothers across Sub-Saharan Africa, supplying its accredited products through international NGOs.
The Transform Health Fund, publicly recognized during the U.S.-Africa Leaders’ Summit in Washington, D.C., in December 2022, was created to tackle Africa’s significant health financing and capacity shortfalls. Despite Sub-Saharan Africa accounting for 14 percent of the global population and 20 percent of the global disease burden, only 1.6 percent of annual impact investments are directed toward Africa’s healthcare sector. “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,” said Ziad Oueslati, Founding Partner at AfricInvest. “Partnering with private sector leaders has proven to be an effective model for scaling locally led healthcare solutions.”
Martin Edlund, CEO of Malaria No More and Executive Director of the Health Finance Coalition, added, “The Transform Health Fund proves that health enterprises serving vulnerable communities are indeed investable. With donor funding for health stagnant and unsustainable debt burdens for African countries, private investment in impactful healthcare is more critical than ever.”
