From the newsletter
Nigerian health-tech firms RxAll and Sproxil secured funding to address the issue of counterfeit drugs, highlighting global investor focus on Nigeria’s pharmaceutical crisis. This development follows a nationwide crackdown in February 2025, which resulted in the seizure of fake drugs, the closure of 11,000 shops in Lagos alone, and calls for life sentences or the death penalty for offenders.
RxAll and Sproxil aim to eliminate counterfeit drugs, protect consumers, and restore trust in global health supply chains. To achieve this, RxAll employs AI drug authentication tools and digital pharmacies, while Sproxil utilises mobile-based verification and tracking systems.
In April, Neopenda, Chefaa, Dawa Mkononi, Meditect, mPharma, RxAll, Sproxil, and myDawa all received funding, with a focus on health tech, mostly in pharmaceutical supply chains. Chefaa secured its second round of funding this year after receiving initial funding in March.
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Southern Africa saw no funding activity in April. West Africa led with four companies: Meditect (Côte d'Ivoire), mPharma (Ghana), RxAll, and Sproxil (both Nigeria). Eastern Africa followed with Neopenda (Uganda), Dawa Mkononi (Tanzania), and myDawa (Kenya). Northern Africa had one company: Egypt's Chefaa, the only repeat-funded entity. All the companies that raised funds in April, except for Chefaa from Egypt, were founded by men.
Sproxil, based in Nigeria, uses mobile technology to help brands build trust, ensure product authenticity, and engage stakeholders. Its solutions protect supply chains from counterfeiting and fraud. Serving over 11 industries, Sproxil offers tools for tracking, rewards, and real-time data capture. More than 200 brands globally rely on its verification services.
RxAll is a Nigeria-based health-tech platform that provides digital infrastructure to pharmacies, hospitals, and wholesalers. It offers tools for drug authentication, pharmacy management, and invoice financing. Through solutions like RxScanner, RxPay, and RxDelivered, RxAll ensures access to affordable, high-quality medicines and protects against counterfeit drugs within global healthcare supply chains.
mPharma, based in Ghana, manages prescription drug inventory for pharmacies, ensuring stock availability. It helps patients access medicines affordably, even on credit, and enables partners to reach underserved populations across Africa. Meditect, also based in Côte d'Ivoire, connects healthcare stakeholders in French-speaking Sub-Saharan Africa. It provides software for pharmacy management, drug authenticity, patient apps, community outreach, and market intelligence to improve access and traceability.
Dawa Mkononi, based in Tanzania, enhances access to medicines by offering credit financing, data-driven ordering, and reliable delivery. It ensures access to authentic medications, reduces counterfeit risks, and serves over 500,500 patients, with more than 2,200 active customers and 1,000 pharmacies. The app streamlines stock management and optimises healthcare supply chains.
Neopenda, based in Uganda, develops affordable medical technologies for resource-constrained settings. Their first product, neoGuard, is a wearable device that monitors the vital signs of vulnerable patients. Neopenda addresses challenges such as power instability and space limitations, aiming to improve patient outcomes, empower healthcare providers, and provide critical data insights to stakeholders, particularly in emerging markets.
Our take
Reports from the World Health Organization and the United Nations link substandard drugs to over 500,000 deaths annually in sub-Saharan Africa. The United Nations Office on Drugs and Crime highlights that counterfeit medications for malaria and pneumonia alone account for nearly 436,000 deaths each year in the region. The financial impact is substantial, with up to $44.7 million spent annually on treating the effects of counterfeit malaria drugs.
The counterfeit drug crisis has also disrupted medical treatment outcomes. Health workers report challenges in patient recovery following prolonged use of counterfeit medicines, which can diminish the effectiveness of legitimate drugs. This undermines disease control efforts for conditions such as malaria, hypertension, and respiratory infections.
The pharmaceutical sector is also under strain. Pharmacists are experiencing eroded public trust and increased operational costs due to the need for additional product verification. Many are now bypassing national regulators and contacting manufacturers directly to confirm authenticity. While these extra measures are essential, they slow down drug distribution and increase business expenses.