Female healthcare entrepreneurs reflect on opportunities, barriers to accessing financing

Female entrepreneurs gathered at an event, ’ Empowering Female Healthcare Entrepreneurs’ where they discussed crucial opportunities and barriers in accessing health financing.

Despite significant efforts to boost the financing of healthcare businesses, female entrepreneurs in particular encounter challenges to access adequate financing.

A 2020 study on women’s entrepreneurship in Africa showed that only 34% of women in Africa engaged with the banking sector, as opposed to 47% of men.

Moreover, loan amounts granted to women were on average 47% lower than those to men.

A study by the Medical Credit Fund (MCF) attributed this to a lack of awareness, limited networks and access to information, and an inability to meet collateral and asset requirements.

The study is a further attempt by MCF to better serve the needs of female entrepreneurs by improving access to finance for healthcare entrepreneurs in Africa.

At the event, successful female healthcare entrepreneurs shared their insights and experiences of navigating the complex landscape of health financing. 

“When we were looking to buy land for our hospital, MCF came along, not just a loan or money, they came up with solutions,” said Anne Waita, owner and CEO of Nairobi Radiotherapy and Cancer Center (NRCC).

NRCC is one of the leading healthcare centers for comprehensive cancer treatment in Nairobi, which provides integrative and personalized cancer care.

“It’s really been an experience and I look forward to working with them, not just for the money but for future experiences,” she added.

MCF Cash Advance was developed in 2017 and has proven to address some of the barriers women experience such as lack of collateral. Since then, the share of MCF loans disbursed to women grew from 19% to almost 29% and keeps on increasing.

Also, with this product loan amounts do not differ between men and women, unlike with term loans.

The event was made possible by the Swedish state’s development finance institution, Swedfund.

“When you look at Medical Credit Fund and their products, they don’t say you are a woman and you don't have collateral, so we are not going to speak with you. They have several products and services designed for everyone,” Audrey Obara, Regional Director, Swedfund East Africa.

“We could be financiers, but you are the only one who knows where the shoe pinches. We offer blended financing that’s tied to quality improvement. it’s not just about the money, it’s about the life of the business,” stated Kennedy Okongo, Medical Credit Fund East Africa Director.