The Transform Health Fund (THF) has raised $111 million from a diverse group of investors, including private sector giants such as Merck & Co., Inc., Philips, FSD Africa Investments, and Grand Challenges Canada. Philanthropic organizations like the Skoll Foundation and UBS Optimus Foundation also contributed to the fund. This growing interest underscores the expanding focus on Africa’s healthcare sector, particularly through innovative blended finance models that combine public, private, and commercial funding sources.
The Transform Health Fund aims to support enterprises that provide proven healthcare solutions, particularly those serving vulnerable populations. THF’s investment strategy focuses on scaling healthcare solutions by offering debt and mezzanine financing—flexible loan options that adapt to a company’s cash flow needs. Targeted companies are those focused on 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,” noted Ziad Oueslati, Founding Partner of AfricInvest. He highlighted that THF’s approach offers a unique solution to the continent’s ongoing healthcare challenges.
Martin Edlund, CEO of Malaria No More, echoed the importance of private-sector involvement in healthcare investment, particularly in light of stagnant donor funding and rising debt burdens across African nations. He emphasized that private capital plays a pivotal role in strengthening Africa’s healthcare systems.
THF has already committed $20 million to key ventures, including Africa Healthcare Network (AHN), Insta Products, and Lapaire Glasses in Kenya. Africa Healthcare Network is the largest dialysis provider in sub-Saharan Africa, while Insta Products manufactures therapeutic foods to combat malnutrition among mothers and children. These investments demonstrate THF’s dual focus on addressing immediate health needs while promoting long-term system improvements.
THF’s blended finance model and strategic investments position it as a critical player in transforming Africa’s healthcare landscape, particularly by supporting local health tech startups and improving access to quality care.
