IFC in $4.5 million investment in Medical Credit Fund to increase quality healthcare in Africa
IFC, a member of the World Bank Group, today announced an investment of $4.5 million in the Medical Credit Fund, part of the PharmAccess Group, to increase access to quality healthcare in Africa.
In collaboration with PharmAccess and technical assistance partners, the MCF has developed an extensive training program to improve both business and clinical performance for healthcare SMEs, using internationally accredited SafeCare standards. MCF’s integrated approach, which increases the impact of investments considerably, has led to quality improvement at more than 70 percent of the funded facilities.
The total investment package, provided by a consortium of investors and donors via two capital rounds, is over $40 million and is intended to help MCF increase access to funding for the broader universe of private healthcare SMEs in Africa.
Apart from IFC, investors include other impact driven institutions such as CDC, the United Kingdom development finance institution, the Overseas Private Investment Corporation and the Agence Francaise de Developpement, alongside Calvert Foundation and other private investors.
“This new support from some of the world’s most valued development finance institutions as well as three private investors is another important step in working towards inclusive healthcare, building on the strong foundation established with our existing public and private donors and investors,” says MCF Managing Director Arjan Poels. “This new financing round will significantly catalyze our efforts to improve access to finance for the private sector in Africa, and we look forward to accelerating our impact together.”
“The lack of adequate healthcare services poses a significant impediment to development of human capital across Africa,” said Mary-Jean Moyo, IFC Regional Industry Head for Manufacturing, Agribusiness and Services in Sub-Saharan Africa. “IFC’s funding to MCF will support the expansion of an integrated product that not only brings a lasting development impact but also further opens up the healthcare SME lending space, catalyzing the commercial banking industry.”
Africa faces a critical shortage of healthcare services. As the public sector has limited financial and operational capacity, the private sector is responsible for more than half of the healthcare delivery, especially to the lower-income population. While delivering a significant share of care, the private sector largely consists of SMEs, who struggle to access funding and operational advice.