The African Export-Import Bank (Afreximbank) and MobiHealthCare Limited (MobiHealth) have signed a project preparation facility agreement that is expected to bolster the expansion of Mobihealth’s telemedicine services in Nigeria, and also assess the feasibility of establishing similar services in Egypt, Ghana, Kenya and Cote d’ Ivoire.
Under the terms of the agreement, Afreximbank will part-finance project preparatory activities that will leverage MobiHealth’s successfully integrated telemedicine proprietary platform, initially piloted in Nigeria, to the four additional countries.
This initiative is expected to rapidly lead to the establishment of a network of telemedicine clinics across Africa, fully equipped with out-patient facilities.
The project preparation facility of up to US$ 1.5 million is expected to advance the Project to bankability, whereupon this is expected to unlock further investments estimated at US$ 65 million.
The preparatory facility will expedite the deployment of digital healthcare solutions, enhancing access and efficiency, and quality healthcare. MobiHealth’s platform utilizes local and diaspora medical professionals who are able to diagnose and prescribe to patients remotely. This reduces waiting and travel times, provides new ways to serve harder-to-reach population and removes barriers for the underserved population.
Additionally, Afreximbank will serve as the mandated lead arranger, overseeing senior debt syndication for the project implementation.
The MobiHealth transaction was originated from the Africa Investment Forum (AIF) platform under its flagship ‘Women as Investment Champions’ initiative.
Afreximbank is one of the founding partners of the AIF. The AIF has been instrumental in mobilizing a US$1.0 million grant for MobiHealth from the United States Trade and Development Agency (USTDA).
Commenting on the agreement, Mrs. 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.”
Dr. 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.”
Mrs Chinelo Anohu, AIF’s senior director 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% that live in rural areas and have little or no access to basic healthcare”.
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