The African Development Bank (AfDB) board of directors recently approved a $25 million equity investment in the Abraaj Growth Markets Health Fund, a contribution that will allow the fund to finance lower-middle and low-income segments of the African population.
The fund, which is the Africa-focused parallel partnership of the Abraaj Growth Markets Health Fund, addresses investment capital needs of growing health care demands that have risen due to the continent’s rapid urban growth.
Investment in the fund is expected to help shore up the health care infrastructure of the region and provide affordable pricing for the target population. Development outcomes expected from the investment include access to quality services and direct benefits for lower income households, with further benefits expected to arise from the private sector.
The Abraaj Group, which manages the fund, has more than 18 investments in health care in Africa.