In many African communities, pharmacies are the first — and often only — point of healthcare access. Studies suggest that up to 70% of initial medical consultations happen at pharmacies, particularly in rural and underserved regions where hospitals and clinics are scarce.
Recognizing this critical role, the Investing in Innovation Africa (i3) accelerator — backed by the Bill & Melinda Gates Foundation, MSD, Sanofi, and other major healthcare players — has chosen to focus exclusively on pharmacy-focused healthtech startups for its 2025 cohort. The program, which initially planned to support up to 15 startups, has narrowed its selection to just seven growth-stage companies, citing funding constraints and a need for immediate impact.
The seven selected startups — Chefaa (Egypt), Dawa Mkononi (Tanzania), Meditect (Cote d’ivoire), mPharma (Ghana), MYDAWA(Kenya), RxAll (Nigeria), and Sproxil (Nigeria/USA)— operate across 19 African countries, offering solutions ranging from digital pharmacy platforms to counterfeit drug detection. Each will receive up to $225,000 in non-dilutive funding, along with commercial support and market access opportunities.
The decision reflects broader trends in African healthtech, where investors are increasingly prioritizing scalable, revenue-generating ventures over early-stage experiments. For i3 accelerator, pharmacy-focused startups, with their direct link to medicine supply chains and patient care, present a clear path to both financial sustainability and healthcare impact.
Why Pharmacies?
Pharmacies serve as a vital bridge in Africa’s fragmented healthcare systems. Beyond dispensing medicines, they often provide basic diagnostics, maternal health services, and chronic disease management. Yet inefficiencies — such as stockouts, counterfeit drugs, and poor inventory management — persist.
The i3 cohort targets these gaps:
- mPharma (Ghana) manages a franchise pharmacy network to improve medicine affordability.
- Chefaa (Egypt) uses GPS-enabled delivery for chronic disease patients.
- RxAll (Nigeria) employs AI-powered spectrometers to detect fake drugs.
- Sproxil (Nigeria/US) offers mobile authentication for medicine verification.
“Pharmacies are the backbone of healthcare access in Africa,” an Accra-based health innovation professional told Launch Base Africa. “Strengthening them means improving outcomes for millions.”
Funding Pressures Force Tough Choices
Originally, i3 aimed to include early-stage startups, but global economic shifts — including U.S. foreign aid cuts — have tightened funding. The accelerator has instead doubled down on ventures with proven traction, capable of scaling quickly.
This mirrors a wider pullback in healthtech investment across Africa.
Still, i3’s track record offers optimism. Since 2022, it has facilitated $11 million in partnerships and created nearly 1,000 jobs, half held by women. Past alumni, such as telehealth platform Ilara Health and diagnostics firm Yodawy, have gone on to raise follow-on funding.
The Road Ahead
The 2025 cohort will participate in i3’s Access to Markets event in December, where they’ll pitch to global pharma firms, governments, and donors. The accelerator aims to broker $30 million in deals over the next year.
For now, the focus remains on resilience. “With geopolitical instability affecting health funding, initiatives like i3 must be both strategic and sustainable,” said Mara Hansen Staples, a global health advisor. “Pharmacies are a smart bet — they’re embedded in communities and already delivering care.”
As African health systems grapple with funding shortfalls, the success of this trimmed cohort could signal a new phase for healthtech accelerators: fewer bets, but sharper ones.