As Africa’s population grows, the demand for resilient health infrastructure, innovative financing and equitable access to care becomes more urgent. Strengthening the health sector not only improves quality of life, but also fuels economic growth by creating a healthier and more productive workforce.

Investing in health in Africa is an important opportunity that generates both societal and economic benefits.

Currently, Africa faces a significant health financing gap. African countries spend just $83 per capita on healthcare, well below the global average of $1,100. This disparity is largely due to limited domestic resources and financial system constraints.

However, efforts to close this gap are gaining momentum, thanks to substantial contributions from organizations such as the Global Fund, the Gates Foundation and Gavi. Their initiatives in disease prevention, treatment and infrastructure illustrate the power of global collaboration to reduce the burden of disease and build stronger health systems.

Innovative financing mechanisms are emerging to mobilize resources and meet healthcare financing needs in Africa.

Blended finance, which combines public and private capital, facilitates health projects across the continent. Public-private partnerships (PPPs) in countries like Kenya and Ghana are also helping to bridge the gap by improving the efficiency of public healthcare through private sector participation.

Additionally, impact investing, in which investors seek both social outcomes and financial returns, continues to attract funding to health initiatives, proving that health investments can yield dividends. both economic and social.

Efforts to mobilize local resources are equally promising. Countries are exploring government taxation, insurance schemes and community health insurance as pathways to self-sustaining health systems.

Rwanda’s community insurance model has significantly improved healthcare access and vaccination rates, demonstrating the effectiveness of locally implemented solutions.

Financial instruments such as social bonds and performance-based financing further incentivize health programs that demonstrate measurable results, prioritizing quality and efficiency.

Digital health solutions are also expanding access. Mobile banking innovations such as M-Pesa make healthcare payments and insurance affordable for underserved populations, while telemedicine and mHealth applications bring services to remote areas. The synergy between digital health and fintech highlights the potential of technology solutions to reach isolated communities.

Political and government action is essential to foster an environment favorable to investments in health. Many African countries are adopting universal health coverage policies, aiming to increase access to health care through structured and coordinated approaches.

Policies that encourage private sector participation and reduce barriers to investment are key to attracting finance and innovation to the health sector. Transparent and supportive regulatory frameworks can enhance investor confidence, particularly for long-term investments in the healthcare sector.

A resilient health system in Africa will require collaboration between governments, development agencies, the private sector and local communities.

Philanthropic contributions, foreign direct investment and impact investing should not replace domestic financing but rather complement it.

By aligning government priorities with sustainable financing models, Africa is creating the foundation for a more equitable and stronger health system, fostering a healthier future across the continent.

It is widely recognized that, despite the rise of impact investing, only a small fraction of funds are dedicated to healthcare.

Faced with a growing population and a significant funding gap for health systems, Africa continues to face urgent health challenges.

Organizations like the Health Finance Coalition (HFC) are stepping up to address the complex dynamics between limited health care funding and effective health services.

In a recent interview in Nairobi, Colleen Connell, Executive Director of the Health Finance Coalition (HFC), highlighted the organization’s commitment to closing the healthcare financing gap by mobilizing resources and empowering entrepreneurs. health the means to scale innovative solutions for more efficient healthcare delivery.

A central theme of HFC’s mission is to bridge the gap between entrepreneurs and investors, particularly addressing the “missing middle” stage where businesses struggle to move from incubation to growth by focusing on capital mobilization. Through tailor-made solutions and a strong network, HFC enables entrepreneurs to grow and prosper.

“HFC was established four years ago to address the critical health financing gap across the continent,” she revealed. “It is necessary for the public and private health sectors to grow and expand to provide accessible and quality health care. »

Colleen reveals that many healthcare entrepreneurs find themselves “stuck in the journey from incubation to acceleration.”

HFC’s innovative capital stack approach combines different types of financing, ensuring entrepreneurs not only grow, but also learn the complexities of healthcare financing.

HFC works with a wide range of investors, both local and international.

A recent partnership with AfricInvaVest to launch a $111 million Transform Health fund illustrates how critical African investors are in financing their continent’s future.

Additionally, collaborations with development finance institutions (DFIs) like the International Finance Corporation (IFC) ensure a mix of local and international investment efforts.

Since its inception, HFC has raised more than $250 million, reflecting its commitment to improving health outcomes in vulnerable communities.

HFC takes a holistic approach to health priorities, focusing on expanding access to high-quality, affordable care. There is a strong emphasis on local manufacturing, particularly in the production of essential health products, heightened by lessons learned from the Covid-19 pandemic.

HFC is dedicated to scaling effective healthcare models across all regions using a cohort-style support program that benefits more businesses. They are focused on creating new models of care and expanding access to care through investments in retail pharmacy chains and last-mile supply chains.

While working primarily within the private sector, HFC recognizes the importance of engaging with governments to support ministries of health and promote public-private partnerships.

Another critical area is digital health solutions, crucial to overcoming geographic barriers in accessing care, particularly in rural areas.

HFC uses a multi-pronged approach to identify businesses in need of support, including referrals from global health partners, donors and large NGOs with which it has established relationships.

To foster an ecosystem where innovative healthcare solutions can thrive, HFC plans to launch a Catalytic Capital Club that encourages investors to engage in higher-risk, high-impact opportunities.

HFC’s commitment ranges from consistent involvement, week after week, to tailor-made approaches that adapt to the needs of each company. And Colleen emphasizes sustainability as a critical aspect of HFC’s mission, with their support aimed at enabling businesses to develop strong growth plans for future independence.

HFC integrates climate health initiatives into its operations, focusing on climate-sensitive diseases like dengue and malaria. Their comprehensive approach helps businesses meet the challenges posed by climate change while remaining focused on healthcare delivery.

By supporting innovative entrepreneurs, fostering investor relations, and addressing pressing healthcare challenges, HFC is leading the way toward a sustainable and equitable future in healthcare. Their multifaceted approach not only drives innovation, but also ensures that these innovations lead to sustainable, long-term improvements in healthcare access and quality across Africa.