Medical Credit Fund

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Last updated 24 May 2020, by Impactyield.

Description

The MCF helps Sub-Saharan Africa meet its growing demand for quality medical services, tying its loans to a quality and business improvement program to ensure its funds result in higher quality healthcare and stronger health enterprises.. In most African countries, the public sector is unable to meet the growing demand for healthcare. Therefore, 50% of the people turn to the private sector, which is dominated by SMEs. However, SMEs have limited access to financing, which prohibits them from scaling. MCF was established to support health SMEs obtain capital and technical assistance to improve their quality, decrease investment risk, and achieve scale. The SMEs include clinics, health centers and hospitals, pharmaceutical and equipment suppliers and other health related enterprises. MCF provides local currency loans of up to 2.5 million USD with local financial partners. The loans are accompanied by an extensive technical assistance program using SafeCare to evaluate, improve and certify the incremental increases in quality of services of healthcare providers. In response to market needs, MCF launched innovative financial products, including a “cash-advance” product based on mobile payment turnover and receivable finance using insurance claims.. To date, Medical Credit Fund is the only debt fund dedicated to health SMEs in Africa. As a debt fund it is unique as it works with local financial institutions by blending its capital thereby attracting local capital and providing capacity building to help local banks understand the health sector. With the 97% repayment rate, the MCF loans are usually the banks’ best performing portfolio. Loans are combined with a technical assistance program aimed at business and quality improvement, using internationally recognized quality standards. With its four local offices and affiliation to PharmAccess Group, MCF is able to develop innovative products to serve specific market needs, e.g. mobile cash advance product with MPESA, receivable financing with the Ghanaian National Health Insurance Agency and financing for public private partnerships.

Incorporation year: 5 – 10 years

Headquarters location:

Currency for fund / product figures:

Total firm assets under management: $10 – 25MM

Membership and other professional affiliations:

Years top investment professionals have worked together:

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