For decades, international aid has been a lifeline for Africa’s healthcare systems. However, reliance on grants and donor funding has left critical gaps in infrastructure, service delivery, and long-term sustainability. Now, with aid flows shrinking, the urgency to build self-sustaining healthcare systems has never been greater.
Africa’s healthcare market is projected to be worth over $259 billion by 2030, fueled by a rapidly growing population, urbanization, and an emerging middle class. Yet, recent aid cutbacks, such as USAID’s withdrawal, are forcing a reckoning—one that requires bold private-sector-driven solutions.
The end of an Era?
In 38 countries, U.S. disbursements last year accounted for 0.5% or more of GDP. Now, that funding has been cut off. Some of the hardest-hit nations include:
- Somalia, where U.S. aid covered 93% of government revenues
- Sudan, where aid accounted for 61% of total revenues
- South Sudan and Yemen, where it represented just over 50%
This stark reality makes one thing clear: Man shall not live by grant alone. If Africa’s healthcare sector is to thrive, it must embrace private investment, innovation, and market-driven solutions that can stand the test of time.
Africa’s Healthtech Unicorns
African entrepreneurs are already proving that local innovation can scale globally and attract major investors. One of the most remarkable examples is InstaDeep.
Founded by Karim Beguir and Zohra Slim, InstaDeep started as a small AI-driven company in Tunisia. Through strategic investments, cutting-edge research, and a relentless focus on innovation, InstaDeep built world-class AI solutions, securing partnerships with companies like Google and BioNTech.
In 2023, BioNTech acquired InstaDeep in a deal valued at nearly $1 billion—one of the largest exits in African tech history. This milestone proves that African-founded startups are capable of achieving global scale, securing international funding, and delivering billion-dollar exits.
Just as InstaDeep scaled AI innovation, Africa’s healthtech sector has the potential to create the next unicorns. From AI-powered diagnostics to decentralized healthcare platforms, private investment in healthtech will drive the continent’s next wave of billion-dollar success stories. Learn more from our healthtech unicorns report here.
Our Impact So Far
We have invested in 16+ startups operating in 10+ countries. Our portfolio companies have:
- Collectively raised nearly $100 million in follow-on capital
- Served 2 million users/customers across Africa
- Delivered over 67,000 pints of blood
- Saved over 15,000 pregnant mothers
- Completed over 5,000 HIV screenings
These numbers underscore the power of private investment to drive real healthcare impact—beyond the limitations of aid.
Our strategy focuses on:
a) Increased Role for the Private Sector: We believe the private sector is crucial in driving healthcare innovation and expanding access to quality services. HealthCap Africa strategically invests in early-stage fintech and healthtech startups. We leverage our extensive network and expertise to unlock new opportunities for our portfolio companies, facilitating key partnerships and connections that accelerate growth. Private sector involvement can bring increased standards, quality, and service offerings that would not otherwise be easily available from the public sector alone.
b) Sustainable Solutions: HealthCap Africa is committed to creating economic value by investing in assets that make the continent of Africa a healthier place. Impact investment should be considered a key model for private investment in healthcare for Africa, seeking financial returns alongside the social impact of transformed health systems. Through our portfolio companies, we are bridging gaps in healthcare delivery, providing affordable diagnostics, maternal healthcare, and emergency care.
c) New Investment Areas: HealthCap Africa focuses on the “Big Four Markets” and Sub-Saharan Africa regions. These regions, which include Nigeria, South Africa, Kenya, and Egypt, are home to some of the continent’s most promising and high-growth opportunities.
- Digital Health: We actively seek and support startups leveraging technology to improve healthcare delivery, enhance access to medical information, and streamline healthcare operations. Some of the startups in our portfolio are providing affordable diagnostics, maternal care and emergency care. This includes:
- Local Manufacturing: We recognize the importance of local pharmaceutical production and support companies developing and creating access to high-quality medicines. Our portfolio company, Lifestores Healthcare, is improving access to high quality medicines, and has impacted the lives of over 200,000 patients across Nigeria.
- Community Care: We prioritize investments in initiatives that strengthen community-based healthcare services, ensuring that care reaches even the most remote areas. Our portfolio company, Emergency Response Africa is providing rapid emergency response to patients in the shortest possible time, and has impacted 43,000+ lives across various communities.
The Time To Invest is Now
The world is changing, and Africa can no longer afford to depend on uncertain donor funding. Private investment is not just an alternative, it is the future of healthcare on the continent.
HealthCap Africa is at the forefront of this transformation, identifying and backing the next generation of game-changing entrepreneurs who are shaping the future of African healthcare.
About HealthCap Africa
HealthCap Africa is the leading healthtech and fintech investment firm in Africa. With a track record of 5.05x DPI in our first fund, the fund was not just one of the best-performing funds in Africa; but placed at the top quartile of funds globally, in terms of financial returns.
At HealthCap Africa, our vision is rooted in believing innovation can transform Africa. We focus on nurturing health tech and fintech trailblazers, providing early-stage funding to companies revolutionizing healthcare delivery and financial inclusion. Our strategic focus lies in Nigeria, Kenya, South Africa, and Egypt, Africa’s economic giants. By concentrating investments in these markets, we aim to accelerate growth, foster collaboration, and drive meaningful impact across the region.
Visit our website to learn more about us: www.healthcap.co