In a significant move to improve healthcare access in Africa, Investing in Innovation Africa (i3), a Gates Foundation-backed initiative, has announced a $1.6 million investment in 15 healthtech startups across the continent. This investment comes at a time when venture capital funding in Africa is declining, with healthtech startups receiving the smallest chunk of funding in the past year.

The initiative will provide $50,000 equity-free grants to ten early-stage startups and up to $225,000 each to five early-stage startups that are solving problems in healthcare delivery, pharmacy services, and product distribution. To be eligible, early-stage startups must have a proven product-market fit and annual revenues exceeding $10,000, while growth-stage companies must demonstrate national-level operations and revenues of at least $500,000.

This investment is part of i3's third cohort, which has already invested $3 million in 60 startups across 16 African countries since its launch in 2021. In its second cohort, i3 funded 29 startups, including Nigerian startups Wella Health, Famasi, and Healthtracka, with a $50,000 equity-free grant.

Beyond funding, i3 will provide startups with strategic customer introductions, bespoke deal facilitation, and tailored partnership readiness support. The program aims to drive impact through over 150 strategic connections with healthcare organizations, aiming for $30 million in contracts while creating local jobs across Africa.

"With the right resources, African-led companies can scale commercially while reaching underserved communities," said Dr. Uchenna Igbokwe, CEO of SCIDaR, which coordinates i3 alongside Salient Advisory. This investment is expected to have a significant impact on Africa's healthcare sector, which has long been plagued by inadequate access to healthcare services, particularly in rural areas.

The investment is also a testament to the growing importance of healthtech startups in Africa, which have been instrumental in improving healthcare outcomes in the continent. With this funding, these startups will be able to scale their operations, improve their products and services, and ultimately, provide better healthcare outcomes for Africans.

Applications for the i3 program are currently open and will close on February 28, 2025. A virtual Q&A session on February 21 will address potential applicants' questions. Selected startups will be announced on April 30.

This investment is a welcome development for Africa's healthcare sector, and it is expected to have a lasting impact on the continent's healthcare landscape. As the healthcare sector continues to evolve, investments like these will be crucial in improving healthcare outcomes and ensuring that Africans have access to quality healthcare services.