Recently, Devex covered the final close of the Transform Health Fund, highlighting the fund’s achievement in surpassing its USD $100 million target and raising $111 million to support private health care solutions across Africa.
At Grand Challenges Canada, we are proud to support innovative solutions that improve health outcomes for underserved communities. One such initiative, the Transform Health Fund, recently achieved a significant milestone by successfully closing and surpassing its initial goal. This Pan-African blended finance fund, managed by AfricInvest and the Health Finance Coalition, focuses on investing in high-impact health care businesses across Africa.
The fund aims to address the health care needs of underserved populations by providing long-term investments in private health care companies. With three investments already made and a goal of supporting 20 to 25 businesses over the next 12 years, the Transform Health Fund is poised to create a lasting impact on the African health care landscape.
A Collaborative Effort for Transformational Health Care
The success of this fund demonstrates the growing recognition of private-sector-driven models as critical to solving Africa’s health care challenges. The Transform Health Fund attracted a wide range of investors, including Grand Challenges Canada, the International Finance Corporation, USAID, Swedfund, Merck & Co., Inc., and others. This diverse group of investors underscores the importance of blended financing mechanisms to support sustainable health care innovations.
Addressing Africa’s Health Financing Gap
With only 2% of global impact investments allocated to health care in Africa, there is a significant need for creative solutions. Many African governments struggle to prioritize health care spending, with 32 countries spending more on external debt payments than on health. In this challenging environment, the Transform Health Fund offers a viable solution. By blending risk-tolerant capital with commercial investment, the fund lowers borrowing costs for health care businesses, encouraging private-sector involvement to complement public health services.
Long-Term Impact and Sustainable Growth
Over the next 12 years, the Transform Health Fund aims to recycle returns into new investments, potentially driving close to $200 million in health care financing. By offering patient capital and tailored financing options, the fund provides the flexibility health care companies need to grow sustainably. This approach is key to building a resilient private health care infrastructure that meets the needs of Africa’s most vulnerable populations.
To learn more about the Transform Health Fund’s impact and the details of its final close, read the full Devex article here.
