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Health investments

Mobilizing capital into the private health sector

Mobilizing capital into the private health sector

Many small and medium-sized clinics in sub-Saharan Africa struggle to find the money to purchase modern equipment, expand their facilities or even pay for basic repairs. Medical Credit Fund provides performance-based financing in combination with capacity building through SafeCare, trainings and other support services (link to quality improvement page). Through Medical Credit Fund we help healthcare providers  build a financial track record and become bankable, grow their business acumen and improve the quality of their healthcare services.

We combine access to loans for private healthcare providers with a performance-based system for improving business performance and quality. Our approach hinges on very close cooperation with and between healthcare providers with technical assistance partners to  support healthcare providers in writing business plans and building up a credit history, and with partner banks. Next to sharing repayment risk with local banks for the loans provided to health SMEs we train bank staff in the opportunities and specific risk profile of the health SME sector.

Ultimately, we aim to contribute to a financially sound healthcare system in Africa by building a strong private sector that complements the public system and provides improved quality services for all.

Medical Credit Fund’s hybrid investment fund has a unique ‘layered capital’ structure that blends debt financing for the loan program with grants for technical advisory services and first loss. In the event that clinics are unable to pay back their loans, the first loss grants absorb this setback, thereby lowering the risk for the debt investors. By using philanthropic capital to leverage funding from private and public sources, we have been able to increase our developmental impact significantly. The growing role of the mobile phone in day-to-day financial services like sending mobile money or paying electricity bills or school fees also opens up new opportunities for innovative financing products. Mobile payment mechanisms that make risks transparent will allow us to expand and increase loan disbursements parallel to the more traditional banking channel. In partnership with CarePay, we have developed a mobile cash advance product: a short-term loan that will benefit from the low transaction costs. Such innovations tend to benefit especially the smaller healthcare facilities with the most difficulty accessing capital.
Learn more about Medical Credit Fund

Latest news about Health investments

Medical Credit Fund selected for ImpactAssets 50 2017

For the fourth time, Medical Credit Fund has been selected for the ImpactAssets 50 (IA 50), an online database that connects investors to fund managers that deliver social, environmental and financial returns. Read more

Feb 28, 2018 in-the-media
Health Management Program Commences in Nigeria

PharmAccess Foundation and Enterprise Development Centre (EDC) partnered to develop the Health Management Program (HMP) to build the capacity of healthcare professionals in the key areas of quality, business, finance and inventory management. The HMP is a Certificate Program for Healthcare Professionals in Nigeria and West Africa. The enterprise development center (EDC) is the entrepreneurship center of the Pan-Atlantic University (PAU) and has the mission of providing holistic business development and support services to small and medium enterprises in Nigeria. Read more

Dec 19, 2017 news
M-TIBA showcased at UHC Conference in Tokyo

From 12 – 15 December 2017, PharmAccess was invited by the World Bank to display M-TIBA in the Business Unusual innovation showcase at the UHC Forum in Tokyo, Japan. Read more

Dec 18, 2017 news

Interested in working with us or learning more about our health investments?

AHTC, Tower C4 • Paasheuvelweg 25
1105 BP Amsterdam • The Netherlands

Phone: +31 (0) 20 – 210 3920