Swedfund invests in African health fund
Swedfund, the Swedish development finance institution, has committed €5 million in debt funding to the Medical Credit Fund II (MCF II), a fund that provides financing to small and medium-sized enterprises within the health sector in sub-Saharan Africa.
According to the World Bank, sub-Saharan Africa has two physicians and 12 beds per 10,000 people, compared to the world average of 16 physicians and 29 beds. Majority of this limited infrastructure is in urban areas where only 41% of the population lives. Approximately 50% of healthcare in sub-Saharan Africa is provided by the private sector.
”MCF II is bridging a critical gap in supporting access, affordability and quality healthcare to low-income groups at a scale that no other debt fund is currently doing. Our investment aims to increase access to healthcare for women and children who are the primary beneficiaries of the healthcare goods and services that MCF supports,” says Maria Håkansson, CEO of Swedfund.
Borrowers of MCF II are often small primary care clinics providing services mostly within maternal and child health as well as treatment and prevention of malaria. According to MCF, low to very low-income segments account for 59% of patients at the facilities supported by MCF.
MCF will deploy the funding to further scale its impact across sub-Saharan Africa with a focus on advancing its digital loan products.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.