NIGERIA— The Swedish Development Finance Institution (Swedfund) has invested US$5 million into Transform Health Fund (THF) managed by AfricInvest.
Transform Health Fund is a blended-finance fund that will invest in African health care that aims to scale up proven and innovative models and initiatives that improve access to affordable care, thereby increasing the quality and accessibility of healthcare across Africa.
Specifically, the THF 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.
Sofia Gedeon, Investment Director at Swedfund, “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.”
AfricInvest was founded in the early 1990s, as an investment and financial services company.
Uniquely positioned as one of the most experienced private equity investors on the continent, AfricInvest has dedicated investment teams focused on Africa and employs more than 90 professionals in eleven offices.
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).
A total of US$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), and International Finance Corporation (IFC).
Others include 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.
Swedfund increasing its presence in Africa
Swedfund has also invested US$22.4 million in Amethis Fund III, which is an African fund that supports the development by investing into enviromentally and socially aware programs in Africa.
Swedfund is a relatively small player with only two offices in Africa and therefore, it is important that Swedfund can find good partners in the form of funds that have a large network around the entire African continent.
“The investment in AfricInvest’s THF means that we can reach many more companies that in turn can develop and reach out to more people around the African continent,” said Audrey Obara, Regional Director at Swedfund in East Africa.
The Swedfund exercises active ownership with a clear focus on ESG (Environmental, Social, Governance) and works to develop work in several areas, including women’s economic empowerment, growth of more jobs with decent work and access to essential products and services, and local economic development.
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