Transform Health Fund raises $111 million to support healthtech startups
On Friday, October 11, AfricInvest announced the successful closing of its Transform Health Fund (THF), raising an impressive $111 million, which exceeded its original goal.
This fund, managed in partnership with the Health Finance Coalition (HFC), aims to enhance innovative healthcare solutions across Africa by tackling important health financing and capacity challenges.
The fund received support from several investors, including the International Finance Corporation (IFC), Proparco, Swedfund, and the US International Development Finance Corporation (DFC). Notable private sector contributors included Merck & Co., Inc., Philips, FSD Africa Investments, and Grand Challenges Canada, along with philanthropic organizations like the Skoll and UBS Optimus foundations.
This diverse group of investors shows a growing interest in Africa’s healthcare sector, especially through blended finance models that mix public, private, and commercial funding.
The Transform Health Fund is dedicated to supporting businesses that provide effective healthcare solutions, particularly those that help vulnerable populations. THF focuses on scaling these solutions by offering debt and mezzanine financing (a flexible loan option) to companies that emphasize local supply chains, digital innovations, and affordable healthcare delivery.
“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, also stressed the importance of private-sector investment in healthcare, especially as traditional donor funding slows down and African countries face increasing debt.
So far, THF has committed $20 million to important ventures, including Africa Healthcare Network (AHN), Insta Products, and Kenya’s Lapaire Glasses. Notable investments include AHN, which is the largest dialysis provider in sub-Saharan Africa, and Insta Products, which produces therapeutic foods to help combat malnutrition in children and mothers.
These investments show THF’s dedication to addressing immediate health needs while also improving long-term healthcare systems. With sub-Saharan Africa facing 20% of the world’s disease burden but receiving very little impact investment, the fund aims to bridge this gap by focusing on locally-led enterprises.
As the Transform Health Fund continues to grow, it plans to invest in more health-tech startups and innovative healthcare delivery models, creating scalable solutions that enhance healthcare access across Africa. With its successful launch and strategic investments, the fund is well-positioned to drive long-term health improvements while supporting the growth of Africa’s emerging health-tech sector.
