From the newsletter
Many growth-level healthcare businesses in Africa have plans to expand but struggle to attract investment. A new European Union guarantee aims to support $170 million in investment through the First Mover Health Fund, targeting hospitals, laboratories, pharmacies, medical distributors, manufacturers and nutrition companies across sub-Saharan Africa.
Expansion requires spending before new services earn enough to cover costs. Uncertain revenues make investors cautious, while short repayment periods can make loans difficult to manage. In Ghana, Accra Medical Centre needed financing with a longer repayment period that IFC said commercial markets were not offering until it stepped in.
The new EU guarantee will absorb part of the investment risk, aiming to attract investors into businesses they might otherwise avoid. The immediate change is protection against potential losses. The financing terms healthcare companies will receive remain to be established.
More details