AfricInvest, a leading pan-African investment platform, has announced the final close of its Transform Health Fund (THF), securing $111 million, surpassing its initial target. The fund, managed in collaboration with the Health Finance Coalition (HFC), is designed to support innovative healthcare models across Africa. By focusing on healthcare enterprises that deliver proven solutions, THF aims to bridge critical health financing and capacity gaps on the continent.
The fund has attracted a range of investors, including Proparco, Royal Philips, the International Finance Corporation (IFC), Swedfund, and the U.S. International Development Finance Corporation (DFC). Additionally, major players such as Merck & Co., Inc., FSD Africa Investments, and Grand Challenges Canada have also backed the initiative. Other contributors include philanthropic organisations like the Skoll Foundation and the UBS Optimus Foundation. These diverse contributions reflect growing interest from commercial, public, and private entities in advancing Africa’s healthcare sector through blended-finance models.
Taking the Blended-Finance Route
THF aims to scale proven healthcare solutions by providing debt and mezzanine financing to enterprises that serve vulnerable communities. By backing businesses focused on local supply chains, innovative care delivery, and digital solutions, the fund seeks to strengthen Africa’s healthcare systems while offering risk-adjusted returns to investors.
“Financing companies in Africa’s health sector through innovative financing models such as the Transform Health Fund is critical to address Africa’s health financing and capacity gaps,” said Ziad Oueslati, Founding Partner of AfricInvest. Oueslati emphasised the importance of private-sector involvement in scaling locally led healthcare solutions. His views were echoed by Martin Edlund, CEO of Malaria No More and Executive Director of the HFC, who stressed that private investment in healthcare is crucial, especially in the current context of stagnant donor funding and rising debt levels for many African nations.
Key Investments and Future Plans
The Transform Health Fund has already committed $20 million to a number of key projects, including Africa Healthcare Network (AHN), Insta Products, and Kenya-based Lapaire Glasses.
Lapaire Glasses operates a network of over 60 optical shops across six countries in East and West Africa. The company provides affordable eye care services, helping address a critical need for vision correction across the region. By offering cost-effective solutions to underserved communities, Lapaire aligns with THF’s mission of transforming healthcare access in Africa.
In addition to Lapaire, THF’s portfolio includes AHN, the largest dialysis chain in sub-Saharan Africa, and Insta Products, a producer of ready-to-use therapeutic foods that combat malnutrition in children and mothers across the continent.
As Françoise Lombard, CEO of Proparco, highlighted: “This innovative blended-finance debt fund aiming to support small and medium-sized companies in health will help to bolster healthcare systems in sub-Saharan Africa while reducing inequalities by improving financial and geographical accessibility to quality infrastructure and products.”
Scaling Impact Across Africa
The establishment of THF was publicly highlighted at the U.S.-Africa Leaders’ Summit in December 2022, where its mission to address Africa’s healthcare challenges was outlined. Sub-Saharan Africa accounts for 14% of the global population and 20% of the global disease burden, yet only a fraction of impact investment is directed toward its healthcare sector. The THF seeks to fill this gap, particularly by focusing on locally led enterprises.
THF’s impact-driven strategy reflects a broader trend in development finance: the need to move beyond traditional donor funding and towards sustainable, scalable models that involve the private sector. By attracting investments from a diverse group of stakeholders, THF has positioned itself as a vehicle for long-term health improvements across the continent.
As the fund looks ahead, it is expected to expand its reach by investing in additional health-tech startups and healthcare delivery models that offer scalable, high-impact solutions. This will not only improve healthcare access but also contribute to the growth of Africa’s emerging health-tech sector.
The closing of THF signals growing confidence in Africa’s healthcare potential. By backing companies like Lapaire Glasses, AfricInvest and the Health Finance Coalition are demonstrating that innovative healthcare enterprises can be investible, profitable, and scalable, all while delivering critical services to those who need them most.