International Finance Corporation (IFC) has invested $4.5 million in Medical Credit Fund (MCF), a social impact fund that enables small and medium-sized enterprises (SMEs) in the health sector to access affordable finance to improve the quality of healthcare in sub-Saharan Africa.
“IFC’s funding to MCF will support the expansion of an integrated product that not only brings a lasting development impact but also further opens up the healthcare SME lending space, catalyzing the commercial banking industry,” Mary-Jean Moyo, IFC Regional Industry Head for Manufacturing, Agribusiness and Services in Sub-Saharan Africa said.
MCF was initiated by the PharmAccess Group which is dedicated to improving access to better healthcare in Africa with operations in Kenya, Namibia, Nigeria, Tanzania and Ghana.
Using internationally-accredited SafeCare standards, MCF has developed an extensive training program to improve both business and clinical performance for healthcare SMEs which has led to quality improvement at more than 70 per cent of the funded facilities.
The private sector in Africa is responsible for more than half of the healthcare delivery as the public sector has limited financial and operational capacity, especially to the lower-income population.
It largely consists of SMEs which however lack access funding and operational advice.
The investment which will help MCF increase access to funding for private healthcare SMEs in Africa is part of a total package of more than $40 million from institutions including CDC; the UK development finance institution; the Overseas Private Investment Corporation; the Agence Francaise de Development; and Calvert Foundation.