Saturday, July 12, 2025
27.5 C
Lagos

ADB invests $20m in Rx Healthcare Fund for Healthcare Delivery in Africa

The Board of the African Development Bank (AfDB) has approved a $20-million equity investment in Rx Healthcare Fund (RxHF) to help improve healthcare delivery across the continent.

RxHF aims to address growing demands for adequate high-quality healthcare services in several countries of North Africa and Sub-Saharan Africa (SSA), which are respectively faced with distinctive set of challenges.

The Fund will provide growth capital to the companies which show high potential for growth in diagnostics, hospitals and pharmaceutical. The investments will be made in Egypt, Tunisia and Morocco and then scaled up into Ethiopia, Kenya, Nigeria and Sudan with substantial transfer of lessons learnt and latest healthcare technology.

Africa is hampered by the widening healthcare delivery gap that is characterized by insufficient healthcare infrastructure, workforce shortages and low insurance coverage in the face of a disproportionate disease burden.

The region’s high level of disease, combined with its growing population base and changing lifestyle calls for a long-term improvement of healthcare system and significant participation of private healthcare providers.

On the other hand, Africa’s rising middle class is expected to reach 50% of the continent’s population by 2020, underpinned by robust macro fundamentals and continuing progress towards achievement of the Sustainable Development Goals, providing a boost to the healthcare market.

The target client of the RxHF is the middle-income class that needs specialised high quality, but affordable healthcare service within Africa to benefit from the Fund’s investments geared towards mid-size healthcare facilities.

The healthcare-focused private equity (PE) funds in Africa with the capability to build an integrated healthcare eco-system across healthcare facilities, service providers and equipment are very limited. The Rx Healthcare Fund management team will tap into the EFG Hermes Private Equity teams’ combined 110 years of private equity management experience and the operation team’s over 70 years of knowledge as well as network in healthcare industry.

The Bank’s participation in this Fund will help advance the agenda of the Bank’s High 5 priority areas – in particular, “Improve the quality of life for the people of Africa” – through creation of affordable high-quality healthcare infrastructure.

By enforcing social infrastructure, and providing equity capital catalyzing for additional resources for private sector development, the project is also in sync with the Bank’s Ten Year Strategy (2013-2022), Human Capital Strategy as well as Private Sector Strategy.

The Fund targets final capitalisation of $200 million. The Bank will be the first Africa-based institution to participate with an equity investment of US $20 million, which will support unlocking African capital and catalyze financing of other development finance institutions (DFIs) and commercial investors.

As an Advisory Board member, the Bank will ensure that transparency, social and environmental, and corporate governance best practices are adhered to both at the Fund and the portfolio company level.

spot_img
spot_img
spot_img

Hot this week

Fidelity Bank Delivers Hope to Internally Displaced Persons in Benue State

Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left);...

Union Bank Responds to Court Ruling on NICON, Global Fleet, Jimoh Ibrahim Case

Union Bank of Nigeria acknowledges the recent judgment of...

NAICOM, CIIN Laud IMT for Advancing Tech-Driven Insurance in Nigeria

The Commissioner for Insurance (CFI) and the CEO of...

NCDMB Unveils Nigerian Content Fund Certificate, Empowers 130 firms with $400m NCI Fund

The Nigerian Content Development and Monitoring Board has introduced...

Local Content, NCDMB on the Spotlight at 2025 NOG Conference

The recently held 2025 Nigeria Oil and Gas (NOG)...

Topics

5 Top Reasons to Attend Titans of Tech 2021

The Titans of Tech 2021 is scheduled to...

On Time International Targets Nigeria in Expansion Drive

On Time International has just announced upcoming tour in...

African Trade Insurance Supported $4bn Transactions in 2016

The African Trade Insurance Agency (ATI) held its 17thAnnual...

8 Firms Honoured for Excellence in Retirement Innovation

The United Nations, Singapore's Central Provident Fund (CPF), The...

Dettol Nigeria Support Better Hygiene During Breastfeeding

The World’s leading consumer health and hygiene company, Reckitt...

STI DGM, Segun Bankole, Buries Dad in Style at Abeokuta

L-R: Oluseun O. Ajayi, Chairman, Sovereign Trust Insurance Plc;...

Inspenonline Publisher, Chuks Okonta, Bags 2023 NAICOM Online Media Excellence Award

Mr. Chuks Udo OKonta, Publisher of Inspenonline has won...

UNDP Unveils Accelerator Lab to Generate Solutions to Nigeria’s Dev Challenges

Today, the United Nations Development Programme (UNDP) officially launched...
spot_img

Related Articles

Popular Categories

spot_imgspot_img