African Development Bank Group approves US$10mn equity in Razorite Healthcare Fund for Africa

10 Apr 2020

The Board of Directors of the African Development Bank has approved a US$10mn equity investment in Razorite Healthcare Africa Fund 1 (RHAF1) to help improve healthcare infrastructure delivery across the continent.

The 10-year deal, approved on 26 February, will resource the Fund to address growing demands for affordable and quality healthcare services in several countries of Sub-Saharan Africa faced with lack of access to low cost, first-class healthcare. RHAF1, to be registered in Mauritius, will provide growth capital to operating healthcare infrastructure facilities which show high potential for growth, as well as build new facilities, where identified as necessary. 

To date, there have been over 9,000 cases of COVID-19 in Africa and over 500 deaths.

The Bank on 8 April unveiled a COVID-19 Response Facility that will mobilise up to $10 billion to assist regional member countries in fighting the pandemic. The Facility will be the institution's primary channel for addressing the crisis.

The advent of the Novel Coronavirus pandemic (COVID-19) has highlighted the need to boost Africa’s healthcare infrastructure system to curb the spread of the pandemic and any future similar crises and build long term resilience. Healthcare-focused private equity funds in Africa with the capability to build equipment and an integrated eco-system across healthcare facilities and service providers are very limited. Target groups include low and middle-income class and vulnerable sectors.

The Fund is expected to increase bed capacity in Africa by over 1,500 and create over 500 jobs over its life span. It will also support the development of local enterprises and private infrastructure in the healthcare infrastructure sector.  The Fund targets final capitalization of US$100mn. The Bank expects its equity investment of US$10mn to catalyze financing from other development finance institutions (DFIs) and commercial investors. As an advisory Board member, the Bank will ensure that the Fund and its portfolio of projects adhere to social, environmental, and corporate governance best practices.

-END-

 

« Back to Member News

RT @FSDAfrica: This new report highlights progress in #FinTech #regulation in Sub-Saharan Africa. Thanks to foundational funding from @FCDO…

Great news for private capital in Africa coming from @CDCgroup, soon to be British International Investment. Get m… https://t.co/veAaM7N9ao

RT @AfricanBizMag: Pandemic recovery is fuelling a deal craze in Africa with a record 319 deals reported last year, compared to the 140 in…

#AVCAMemberNews: Verod Capital names Ori Rewane new Head of Investor Relations & Communications. Ori brings 18+ ye… https://t.co/MRclnXhu0l

Global interest in Africa's #VC ecosystem couldn't be higher. But there is more work to be done to close the early-… https://t.co/jeIK26AmK4

;