The African Development Bank (AfDB) has approved a $25m equity investment in the Abraaj Growth Markets Health (Africa) Fund, the Africa focused parallel partnership of the Abraaj Growth Markets Health Fund.

This contribution will allow the Fund to provide access to finance and capacity building for scalable and sustainable healthcare models for lower-middle and low-income segments of the populations in Africa.

The proposal is well aligned with the Bank’s High Five Item on Improving the Lives of Africans and with various Bank and target country strategies.

The Fund will address investment capital needs of growing healthcare demands that are driven by Africa’s rapid urbanization and attendant population growth.

The urban growth is also associated with a growing middle class that in turn drives consumption of goods and services including private health care. The Fund’s investment will see a major improvement in health care infrastructure and quality of services at affordable pricing for the target population.

AfDB said that the Abraaj Group is one of the most experienced fund managers in Africa in this sector, with over 18 investments in healthcare in Africa alone.

"Its comparative advantage stems from a strong local presence in target zones and the quality of its team, with demonstrable first-hand experience in private equity healthcare management in Africa," the Bank said.

"The main development outcomes are expected to stem from increased access to affordable and quality healthcare services and direct benefits to low and middle-income households, mothers and children, with further benefits expected to arise from private sector development based on investments in scalable and sustainable healthcare companies.'