Press release -
Swedfund invests USD 5 million in African health fund
On May 24, Swedfund invested USD 5 million into Transform Health Fund (THF) managed by AfricInvest. It is a blended-finance fund that will invest in African health care. The aim is to scale up proven and innovative models and initiatives that improve access to affordable care, thereby increasing the quality and accessibility of health care across Africa.
Specifically, the Transform Health Fund will prioritize investments in sub-Saharan Africa in three critical areas targeting low-income patients: supply chain transformation, innovative care delivery models, and digital innovation.
- Swedfund works in various ways to find business models and partners that enable us to reach more people who currently do not receive care, given the great needs that exist. This is a typical such investment. By financing healthcare in developing countries, conditions are created for medical expertise to be maintained and developed in the countries and it can be passed on to other healthcare facilities, says Sofia Gedeon, Investment Director at Swedfund.
A total of USD 50 million is invested from development institutions, commercial, public and private investors. In addition to Swedfund, other participants include Royal Philips, Merck & Co., Inc. (known as MSD outside the United States and Canada), U.S. International Development Finance Corporation (DFC), International Finance Corporation (IFC), FSD Africa Investments, Grand Challenges Canada (with funding from Global Affairs Canada), U.S. Agency for International Development (USAID), Netri Foundation, Anesvad Foundation, Chemonics International and MCJ Amelior Foundation.
Transform Health Fund will primarily provide debt and mezzanine financing to scale high-impact health companies serving vulnerable communities. The fund is expected to strengthen health systems in Africa, which are facing severe funding and capacity gaps – challenges exacerbated by COVID-19 and climate change – while working towards the Sustainable Development Goals (SDGs) and Universal Health Coverage (UHC).
Background: Healthcare financing in Africa
Sub-Saharan Africa is home to 14% of the world's population, but it has 20% of the global burden of disease. And today, only 1.6 percent of annual investment in the world for the health sector reaches Africa.
The opportunity: Innovative solutions to support African healthcare
AfricInvest, with its three decades of investment expertise, pan-African footprint and network, will provide funding to scale critical innovations that contribute to a more resilient health ecosystem.
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance. We are financed through reflows from the portfolio and capital injections from the development assistance budget. The return from the portfolio finances our operations and we reinvest reflows from our portfolio in new projects, i.e. we recycle our capital injections.
For more information: please visit www.swedfund.se/en| www.edfi.eu
