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Cordaid NL
Health care Private Sector Development Burundi Rwanda

Cordaid Health Investment Fund finances new maternity room

The Cordaid Health Investment Fund has disbursed €10K to allow two small health centers in Rwanda to buy medical equipment and refurbishment of the maternity room. A further 10-12 investments are planned in September in Rwanda and Burundi.

These are the first two investments by the Cordaid Investment Fund since the launch of the pilot phase of the fund.

The Cordaid Health Fund invests in and supports health centers and district hospitals in Sub-Saharan Africa. The Fund has a committed capital of €7.5 mln and intends to grow to €20 mln with local fund operations in at least seven countries.

The first investments mark an important step in the establishment of the Cordaid Health Fund that expects to reach out to at least 2.000 health centers in Sub-Saharan Africa.

PBF

The fund works through Performance-Based Financing (PBF).  Cordaid has been a pioneer in PBF funding since 2001, supporting over 20.000 health centers so far.

Announcing the first investment, Remco van Veen, Director of Business Unit Health, said:
“Health centers and district hospitals are an important but underserved segment of the health system. They are typically not-for-profit centers that serve large populations of rural poor people. They depend on ad-hoc grants for improvements and have little access to structured bank or commercial funding. Through the investments made by the Cordaid Health Fund, health centers will improve their performance, earning additional income and serve more people with quality services. ”

The Cordaid Health Investment Fund offers short and medium-term loans as well as technical assistance support in areas such as financial and business management.

Discussing further investments, Laure Wessemius Chibrac, Director Cordaid Investments, added:  “The Cordaid Health Fund delivers financing to help health centers to expand their assets, for example, to buy medical equipment, to renovate maternity rooms, to arrange for stable supply of energy, or to invest in medicine supply, and scale their long-term sustainability. The technical assistance funding supports health centers to scale up and improve business operations. In various sectors, this blended investment approach has proven to bring investees to scale and reach sustainability allowing them over time to attain private sector financing while serving large numbers of people with much-needed health services”.