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Transform Health Fund Raises $111 Million, Eyes More Healthtech Startup

October 11, 2024

AfricInvest, a pan-African investment platform, Transform Health Fund raises $111 million, eyes more healthtech startup.

The fund, managed in partnership with the Health Finance Coalition (HFC), aims to boost innovative healthcare models across Africa by addressing critical health financing and capacity gaps.

Several investors, including the International Finance Corporation (IFC), Proparco, Swedfund, and the US International Development Finance Corporation (DFC), backed the fund.

Key private sector players like Merck & Co., Inc., Philips, FSD Africa Investments, and Grand Challenges Canada contributed, along with philanthropic organisations such as the Skoll and UBS Optimus foundations.

The diverse pool of investors highlights a growing interest in Africa’s healthcare sector, particularly through blended finance models that combine public, private, and commercial funding.

The fund wants to support enterprises that deliver proven healthcare solutions, particularly those serving vulnerable populations.

THF’s approach focuses on scaling healthcare solutions by offering debt and mezzanine financing (a business loan that provides repayment terms adapted to a company’s cash flows) to companies that focus on local supply chains, digital innovations, and affordable care delivery.

Transform Health Fund

“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,” said Ziad Oueslati, AfricInvest’s Founding Partner.

Martin Edlund, CEO of Malaria No More, echoed his sentiment, emphasising the importance of private-sector investment in healthcare, particularly as donor funding stagnates and African countries face rising debt.

THF has already committed $20 million to several key ventures, including Africa Healthcare Network (AHN), Insta Products, and Kenya’s Lapaire Glasses.

Other notable investments include AHN, sub-Saharan Africa’s largest dialysis provider, and Insta Products, which manufactures therapeutic foods to combat malnutrition among children and mothers.

These investments demonstrate THF’s commitment to addressing immediate health needs and long-term system improvements.

With sub-Saharan Africa carrying 20% of the global disease burden but receiving minimal impact investment, the fund aims to fill this gap by focusing on locally-led enterprises.

This strategy aligns with a broader development finance trend of shifting away from traditional donor funding towards sustainable, scalable private-sector models.

As THF expands, it intends to invest in more health-tech startups and healthcare delivery models, offering scalable solutions that improve healthcare access across Africa. With its successful close and strategic investments, the fund is positioned to make long-term health improvements while promoting the growth of Africa’s emerging health-tech sector.

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