Medical Credit Fund

Africa

In 2009, the foundation launched the Medical Credit Fund (MCF) to finance small and medium-sized healthcare facilities in Africa, improving access to quality services for low-income patients.

MCF provides flexible local currency debt finance to healthcare providers through risk-sharing partnerships with local financial institutions. 

Borrowers include hospitals, clinics, diagnostic centres, pharmacies and training institutes. Alongside debt capital, MCF provides healthcare providers with technical assistance to help improve their quality and increase their capacity.

Our investment

In 2017, CDC made a $10 million long-term loan to MCF through the Impact Fund. Other investors include the IFC, OPIC, Calvert Impact Capital, Dutch DFI FMO, US development agency USAID, the Dutch Ministry of Foreign Affairs, and the Pfizer Foundation.

Expected impact

The private sector in Africa delivers half of the continent’s healthcare services but is chronically underfunded. Small and medium sized healthcare providers, in particular, find it difficult to access capital to expand clinic capacity or for other upgrades.

Over the years, MCF has built a well-performing SME loan book in partnership with financial institution partners in Kenya, Tanzania, Ghana and Nigeria. 

To date, MCF has disbursed over 1,900 loans together with 18 financial partners, to over 800 different healthcare clinics and pharmacies, which service more than 1.3 million patients per month. 

Of these, over 56 per cent are low-income patients and 75 per cent comprise women and children.  MCF has also overseen the delivery of training to nearly 2,000 staff within their partner financial institutions, and provided expertise to improve the business management and quality of services delivered by healthcare providers.

Environmental and social aspects

CDC works closely with MCF on devising additional guidelines for its robust Environmental and Social Management System; we have also provided specific technical assistance for managing the environmental and social risks associated with healthcare.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
May 2017
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$10m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Netherlands

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status