Carnegie’s involvement relates to the set-up of the risk management and financial organisation of the Medical Credit Fund (MCF). MCF works with a range of partners to help private healthcare clinics access affordable finance and support to improve the quality of healthcare they deliver. MCF also offers technical support and guidance to help develop SME private healthcare’s growth strategy and identify the most effective areas of investment.
This assignment included the development of a selection framework for financial partners and structuring a co-funding framework whereby MCF could work together with local financial institutions to unlock the funding for the SME healthcare sector. In these partnerships MCF funds individual SME private healthcare organizations with loss-share on pari passu basis.
Before entering into an agreement with local financial partners, the partners have been subject to a due diligence on the following, amongst others:
- Counterparty risk analysis (Profitability, Liquidity, Solvability, Portfolio Analysis),
- Analysis of the loan administration infrastructure (including direct connectivity to reporting systems of MCF),
- Governance, and
- Customer protection principles.
Since the start of the assignment, MCF entered into 18 different partnerships in five different countries (Ghana, Kenya, Nigeria, Tanzania, Uganda). In total 2,029 loans were disbursed under these partnerships to health SMEs. The financial partnership framework and financial partner due diligence framework has been integrated into the company’s financial and risk policies that have been signed.