Transform Health Fund Calls for Financing Applications from African Healthcare Companies

May 9, 2025 (NAIRBOI) – The Transform Health Fund (“The Fund” or “THF”) is calling for Applications from African healthcare companies seeking investment.

The Transform Health Fund, an initiative of Health Finance Coalition and AfricInvest, is a $111 million debt/mezzanine fund, dedicated to creating access to quality, affordable healthcare products and services and building resilience in Africa’s healthcare ecosystem.

By scaling proven innovations and sustainable business models, the Fund aims to address critical healthcare challenges, improve access to affordable and quality healthcare, and ensure essential supplies for middle to low-income populations across the continent.

Opportunity

THF provides customized financing to organizations working on scalable, high-impact solutions in the healthcare sector. With a focus on debt and mezzanine investments, the Fund targets companies delivering measurable social outcomes and long-term financial sustainability. THF invites healthcare companies with presence in the Southern African Development Community (SADC) region to submit applications to apply for investment. The Fund seeks to partner with entities that are implementing solutions to create access to quality, affordable healthcare products and services. Applicants with sustainable and scalable models that align with THF’s objectives are encouraged to apply. The Fund’s investment criteria are as follows:

  • Investment Structures – Debt and mezzanine capital
  • Ticket size – USD 2M – USD 15M
  • Currency – USD-denominated
  • Tenor – Up to 7 years, to be determined based on company’s cash flow needs
  • Grace Periods – Up to 2 – 3 years, dependent on company’s cash flow needs
  • Collateral – flexible, including ringfenced cash flows / contract financing, sponsor share pledge, etc.

THF is able to move quickly and support companies in developing strategy and investment materials. This includes practical support in areas such as strategy development, financial planning, and building networks. It also provides technical assistance to strengthen organizational capacity and support sustainable growth.

Focus Areas

THF is committed to addressing systemic challenges in healthcare through investments. Specific areas of interest within THF’s strategic pillars include, but are not limited to:

  • Supply Chain Transformation: Business models in scope include: manufacturers of pharmaceuticals and/or medical devices, distributors of medical products, logistics / transport / cold chain companies that operate in the health sector, health insurance / health financing, etc. This can include models that improve infrastructure, logistics, and distribution systems to strengthen healthcare delivery; enhance last-mile supply chain capacity for underserved regions or implement robust financing models and data-driven approaches to ensure supply chain efficiency.
  • Innovative Care Delivery: Business models in scope include: hospitals, clinics, labs, imaging centers, etc. Products and solutions should create access to quality, affordable health service delivery and management models, including primary care, with a focus on scalability, efficiency, and measurable health outcomes. Initiatives should scale proven approaches to delivering healthcare services. Efforts should demonstrate clear improvements in patient outcomes, operational efficiency, and cost-effectiveness in reaching underserved populations.
  • Digital Innovation: Business models in scope include telemedicine, HMIS/EMRs, inventory management systems, etc., Companies that leverage digital platforms and innovations to transform healthcare delivery by improving access, scalability, and efficiency. Additionally, companies that offer digital innovations like telemedicine to extend healthcare access to remote and underserved communities, breaking down geographical barriers and reducing the cost of care.

All applications will be reviewed on a rolling basis. Interested healthcare companies can review eligibility requirements and apply for an investment through the Transform Health Fund’s application online portal.  For inquiries, contact hfcinfo@healthfinancecoalition.org.

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Unlocking Growth: Navigating the Capital-Raising Journey for African Healthcare Businesses

Access to financing is pivotal for business growth, yet it remains a significant challenge for many in Africa. The International Finance Corporation (IFC) estimates that the finance gap for formal MSMEs in developing countries is approximately $5.2 trillion, representing nineteen percent of these countries’ combined GDP. Even more striking, over fifty percent of African businesses fail to secure their intended capital on the first attempt, often due to a lack of investor readiness and misaligned expectations.

Capital raising fuels innovation and expansion. Whether its equity financing, where ownership for investment is traded, or debt financing, which provides funds repayable with interest, each path offers distinct opportunities and challenges.

The capital-raising landscape is evolving rapidly, driven by technological advances and regulatory shifts. Digital platforms now connect businesses to investors with ease, democratizing access to funding like never before. Simultaneously, new laws are unlocking innovative financing pathways, creating an environment ripe with possibilities.

Navigating this dynamic space demands a strategic approach. Below, we explore the essential steps to prepare businesses for a capital raise, strategies for effective fundraising, and practical solutions to navigate transaction complexities.

Preparing Your Business for a Capital Raise

Assess Your Financial Health: Assessment of financials is a crucial step in preparing for a capital raise. Dive deep into key financial metrics such as revenue growth, profitability, and cash flow, benchmark your performance against industry standards, and undertake historic trend analysis. Such evaluations provide a clearer picture of your business’s strengths and weaknesses, helping identify areas to improve before approaching investors. A strong financial foundation is critical to gaining investor confidence and demonstrating readiness for growth.

Have a Compelling Growth Strategy Backed by Financial Projections: Investors seek businesses with a clear vision and a path to success. Develop a well-defined growth strategy that outlines how your business plans to scale and achieve profitability. Support this strategy with detailed financial projections that reflect realistic revenue and profit targets. Growth strategies should further be backed by a deep understanding of the state of the markets, business operations as well as potential challenges.

Understand Your Business Needs: Capital raising isn’t a one-size-fits-all process; it must align with the specific needs of your business. Determine the best type of financing, from grants, debt, convertibles, equity financing, or other financing mechanisms. Additionally, take a cash flow approach to calculate the exact amount of capital needed. Raising too little can leave you underfunded, while raising too much could dilute ownership or add unnecessary complexity.

Strategies for Effective Capital Raising

Be Well-Prepared with Transaction Documents: Your transaction documents are the backbone of a successful capital raise. Ensure your pitch deck is compelling and articulates your value proposition, market position, and growth potential. Complement this with a well-organized data room containing financial, operational, and legal documents to expedite investor due diligence. Professional, comprehensive documentation reflects preparedness and builds investor trust.

Build Strong Investor Relationships: Investors place significant weight on the capabilities of the management team, sometimes just as much as, or even more than, the business evaluation itself. Capital raising is as much about relationships as it is about funding. Engage with potential investors early, building trust and rapport over time. Strong relationships not only improve your chances of securing funding but also pave the way for long-term partnerships. Demonstrating an understanding of investors’ goals and aligning your pitch with their priorities can set you apart in a competitive landscape.

Understand Investor Priorities: Each investor has unique priorities, whether they focus on returns, sustainability, impact. or industry-specific growth. Take the time to research what matters most to your target investors. Align your messaging with their expectations and show how your business meets their goals.

Practical Solutions for Navigating Transaction Complexities

Conduct an In-Depth Valuation Assessment: A thorough valuation assessment is essential for setting realistic expectations. Establishing your business’s worth accurately will not only guide negotiations but also help avoid overvaluation, which can deter potential backers.

Use Scenario Modeling to Guide Negotiations: Scenario modeling is a powerful tool for navigating negotiations. By simulating different outcomes, you can anticipate challenges and better understand the implications of various deal structures.

Seek External Support to Structure Deals: Navigating the complexities of structuring capital-raising transactions can be overwhelming. Engaging external advisors or consultants with expertise in deal structuring can ease the process. These professionals bring valuable insights, handle regulatory requirements, and provide strategic guidance.

Ensure Compliance with Legal and Regulatory Requirements: The capital-raising process involves extensive legal and regulatory requirements that vary by jurisdiction. Work closely with legal advisors to ensure compliance, avoid delays, and minimize risks. Staying ahead of regulatory changes can also position your business as a credible and reliable investment opportunity.

Develop a Contingency Plan: Unforeseen challenges can arise during capital raising, from economic shifts to investor withdrawals. Having a robust contingency plan ensures you’re prepared to adapt quickly and maintain momentum. This plan could include alternative funding options, backup investors, or flexibility in your deal terms.

Focus on Clear and Transparent Communication: Open, honest, and transparent communication is vital throughout the capital-raising process. Regular updates and clear messaging can help build trust and keep all stakeholders aligned. Investors value clarity and are more likely to engage when they feel well-informed about your business’s progress and challenges.

Interested in learning more?

We’d love to hear from you. Please use the form to send us a message.

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