Contact Share

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.

View the Medical Credit Fund Dashboard
Learn more about Medical Credit Fund

Latest news about Health investments

Impact of social protection interventions for basic healthcare provision

A policy brief written by PharmAccess, AIGHD, Amsterdam Institute for International Development (AIDD), Health Policy Plus and the African Population and Health Research Center presents the key findings from a two-year study comparing implementation and impact of two social protection interventions for basic healthcare provision. Read more

Nov 21, 2017 publication
Credit Bank and Medical Credit Fund partner to increase access to finance for Kenyan health sector

On 20 November 2017, Credit Bank and the Medical Credit Fund have announced a partnership that aims to increase access to better healthcare services in Kenya. The partnership benefits private healthcare institutions and accommodates access to technical assistance and affordable financial support with the aim of improving the quality of healthcare. Read more

Nov 21, 2017 in-the-media
Launch of Woman360 to accelerate entrepreneurship in healthcare in Ghana

Last week during a festive launch, Woman360, standing for exceptional maternal care always, was born. Woman360 is a franchise for high quality antenatal and delivery services. According to Dutch ambassador Ron Strikker “Woman360 creates the opportunity to meet the demand of the middle-income women who are willing to pay for better services for health, which improves overall health in Ghana.” Read more

Nov 02, 2017 in-the-media
Queen Máxima visits Lagos digital health insurance pilot

Her Majesty Queen Máxima of the Netherlands visited Nigeria this week in her capacity as the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA). The main aim of the visit was to explore opportunities to accelerate Nigeria’s National Financial Inclusion Strategy. She also visited a private hospital where, upon the request of the Lagos State Government, PharmAccess and CarePay are piloting a digital health insurance program... Read more

Nov 01, 2017 news
Great Escape Documentary will be shown at Dutch Global Health Film Festival

Partner of PharmAccess, The Joep Lange Institute, is proud to present its documentary ‘The Great Escape’ at the first Dutch Global Health Film Festival that is taking place in Utrecht on Saturday October 28th. The London based initiative introduces the festival for the first time in the Netherlands to bring together people with interest in global health to think, discuss and debate about global health related issues. The Great Escape is a short documentary how to reach social equity in healthcare in Africa by using mobile technology.

Read more

Oct 25, 2017 news

“Before joining the program, the bank lacked the technical know how to provide loans for private healthcare practitioners.

Medical Credit Fund has opened up these avenues by bringing in bankable loan proposals and by setting up risk and fund sharing agreements. We then perform due diligence according to our own lending mechanisms. Upon disbursement, we monitor the loan to ensure timely repayment and provide training’s on relevant financial topics such as account operations and proposal writing.”

– Esther Daudi Business Development Officer Special Projects K-REP bank, Nairobi

Medical Credit Fund in Tanzania

Clinics and dispensaries, which are valuable first and sometimes only points of health care access for many people, are often not able to improve their services because small loans are not easily accessible. As doctor John Rukazibwa, owner of Mission Mbagala Dispensary in Dar es Salam explains. “It has been difficult for us to obtain a loan because we don’t have collateral.”  We provides business training and advice as well as sustainable methods on how to improve their image and services so that financial service providers see the value in with providing them with loans.

Investments briefs

The Investments briefs provide an overview, insights and background on several projects, or subject areas usually dealt with in long form researches conducted by PharmAccess and our partners.

View brief
View brief
View brief

Medical Credit Fund Progress Reports

Here you can find the Medical Credit Fund progress reports

Progress Report 2014
View report
Progress Report 2013
View report

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