MobiHealth, Afreximbank deal to spread digital healthcare in Africa to unlock $65m investment

• AIF originated MobiHealth under its ‘Women as Investment Champion’ initiative

• Afreximbank to part-finance $1.5m facility

Business a.m. Reporter

Africa Investment Forum (AIF) originated MobiHealth has signed a $1.5 million deal with Afreximbank that will see it expand its digital healthcare solutions across Africa with the potential to unlock investment estimated at $65 million, according to a statement on the transaction made available to Business a.m.

MobiHealth’s healthcare solutions are built around its proprietary platform that utilises local and diaspora medical professionals with the ability to diagnose and prescribe to patients remotely.

The deal signed between MobiHealth and Afreximbank is a project preparation facility agreement that will help boost and expand MobiHealth’s telemedicine services in its founding base of Nigeria, and then assess the feasibility of establishing similar services in Egypt, Ghana, Kenya, and Cote d’ Ivoire.

According to the Afreximbank statement sent to Business a.m., the multilateral trade finance organisation will part-finance project preparatory activities that will leverage the firm’s successfully integrated telemedicine proprietary platform, which took roots in Nigeria, to the four additional countries.

It noted that the initiative is expected to rapidly lead to the establishment of a network of telemedicine clinics across Africa, fully equipped with out-patient facilities.

Accordingly, the project preparation facility of up to $ 1.5 million is expected to advance the project to bankability and consequently lead to the unlocking of further investments estimated at $65 million.

Afreximbank explained that the preparatory facility will expedite the deployment of digital healthcare solutions, thus enhancing access and efficiency, and quality healthcare.

The MobiHealth platform, it said, utilises local and diaspora medical professionals who are able to diagnose and prescribe to patients remotely, adding that this reduces waiting and travel times, provides new ways to serve a harder-to-reach population, and removes barriers for the underserved population.

The agreement means that Afreximbank will serve as the mandated lead arranger, overseeing senior debt syndication for the project implementation, the statement further explained.

The MobiHealth is a transaction that originated from the Africa Investment Forum (AIF) platform under its flagship ‘Women as Investment Champions’ initiative and Afreximbank is one of the founding partners of the AIF. The AIF has been instrumental in mobilising a $1 million grant for MobiHealth from the United States Trade and Development Agency (USTDA).

Kanayo Awani, executive vice president, Intra-African Trade and Export Development Bank, Afreximbank, said: “This initiative will fundamentally reshape the delivery of healthcare services with broader implications for healthcare services across the continent. We will not only be embracing digital technology but also harnessing the same to help our member countries accelerate their progress towards the attainment of Universal Healthcare Coverage, and improve equitable access to quality, affordable healthcare. Afreximbank is pleased to join USTDA to support bankable studies and services to ensure advancement of this impactful health project.”

Also reacting, Funmi Adewara, chief executive officer and the project sponsor of MobiHealth, said: “The signing of this facility agreement marks yet another significant milestone in MobiHealth’s quest to proffer digital healthcare solutions across the continent. We are thrilled to have the support of Afreximbank, a pan-African multilateral financial institution with the scale and capacity to enable us to achieve this objective in a timely manner. Their involvement is a strong validation for our business model and I would like to laud Afreximbank, AIF and USTDA for their visionary leadership and steadfast commitment to support the provision of quality healthcare to African citizens.”

Chinelo Anohu, AIF’s senior director and head, Africa Investment Forum said: “This is a ground-breaking achievement for a female-led startup given the challenges they are known to face especially when it comes to access to financing, and we are very excited to have supported Mobihealth on this funding with Afreximbank, one of AIF’s founding partners. Mobihealth’s innovative mobile health solutions is a game changer for a continent where so few are able to access healthcare and will therefore make a huge difference in Nigeria and the wider Africa continent, particularly for the 70 percent that live in rural areas and have little or no access to basic healthcare.”