Impact investors set to transform Nigeria’s health sector

First Atlantic Capital Partners (FACP) is poised to revolutionise the narrative in Nigeria’s health sector as it moves to facilitate the transition of the sector from being a net consumer of economic resources to a net producer of wealth.

Industry experts said that the deficiency of health infrastructure in the country has caused citizens to spend up to $1 billion on the treatment of various ailments, including performing renal dialysis, outside the country.

In a deal whose value was not disclosed, FACP, a Nigeria-based impact investment firm, collaborated with Polaris Partners, a US-based health care and technology venture firm, to boost the activities of Africa healthcare network (AHN) through significant investment through a convertible note.

“This deal demonstrates our commitment to increasing the access to and quality of health care, particularly for underserved segments of the population,” said Kelechi Ohiri, Managing Partner at FACP.

Ohiri expressed excitement at the prospect and said that together with AHN management and Polaris, the firm is excited to continue making social impact in sub-Saharan Africa, adding that “We are currently exploring other potential markets where there are strong fundamentals and significant need for dialysis and kidney care services.”

AHN is Rwanda’s largest dialysis and kidney care services chain, and the deal is expected to fortify the health care provider’s to open over 20 dialysis centers across Africa to cater for projected rise in demand triggered by demographic and epidemiological changes that increase the prevalence of chronic kidney disease across the continent.

According to a PWC report, the health infrastructure in Nigeria is grim based on 2015 statistics, as the country’s bed per thousand population which stood at 0.9 in 2013, ranking far lower than those of South Africa and Japan that stand at 2.29 and 13.32 respectively.

Experts have therefore suggested that innovative approaches that involve private investors should be adopted by the managers of the health sector to narrow the widening infrastructure gap.

The Oxford Business Group, a global publisher and consultancy outfit said that the Nigerian market offers substantial opportunities for private investment, particularly in the growing middle-income segment.

“With the government focusing its efforts primarily on demand-side management through measures to improve financing with insurance, these opportunities are likely to grow. However, to fully capitalize on the opportunities, private providers will need to increase their competitiveness in terms of the breadth, quality and cost of services,” the group said.

 

INNOCENT UNAH