The African Development Bank is committing $20 million in capital to the Rx Healthcare Fund, an Africa-focused private equity investment vehicle which will target growth capital opportunities in diagnostic, hospital and pharmaceutical companies across the continent.
The fund is looking to raise $200 million in total, and will be managed by EFG Hermes’ private equity investment team. Initially backing businesses in Egypt, Tunisia and Morocco, it’s expected to expand its investment region to include Ethiopia, Kenya, Nigeria and Sudan, bringing capital and technology transfer to these under-served regions.
With the number of healthcare-focused private equity firms capable of building integrated healthcare ecosystems across healthcare facilities, service providers and equipment being limited currently, the fund aims to capitalize on its managers’ expertise and networks to build a platform of high-quality, specialized yet affordable healthcare services for the continent’s growing middle class.
African Development Bank is the first Africa-based institution to commit capital to the fund, which will hopefully catalyze further commitments from African capital providers as well as other development finance institutions and international commercial investors.