The instruments that move African health innovation

Classical funding models are outdated and clear gaps in funding instruments exist. This is what AHRIFF funders are building instead — and where they are looking for co-investors.

The gap

Why good science stalls before it reaches a market

Innovators and manufacturers in Africa have limited access to sustainable money, which leaves them in the valley of death far longer than their peers elsewhere. Pockets of excellence without a scaling pathway produce a persistent gap between product development and adoption.

The picture got harder in 2025. US public funders are among the largest financiers of infectious disease research, and their withdrawal exposes research continuity across Nigeria, the DRC, Kenya, South Africa, Mali, Madagascar, Malawi and Zambia. At the same time, several bilateral funders are phasing out grants in favour of market-based instruments in a smaller set of countries.

The response the Forum keeps returning to is not more money on the same terms. It is a wider set of instruments, deployed by funders who know what each other is doing.

What funders agreed

Non-USD based investments are the goal, with grants, equity and debt playing different roles depending on where a business sits — pre-revenue, post-revenue or profitable. Funding and donor priority misalignment undermines local industry.

Upskilling regulators

Harmonisation of regulatory agencies remains critical, with the African Medicines Agency at the centre of it. Without it, a product approved in one market has to start again in the next.

Advance commitments

Advanced commitments for purchasing wherever possible — through governments, the private sector and developing insurance schemes — are what turn a manufacturing plan into a financeable one.

Free trade implementation

Accelerating implementation of the African Continental Free Trade Agreement is a precondition for the scale that local manufacturers need to be viable.

The funding spectrum

Different instruments do different jobs. The persistent failure in African health financing is not the absence of any one of them, but the absence of a handover between them.

Instrument
Stage
What it does
Typically deployed by
Discovery and research grants
Pre-revenue
Fund early science and proof of concept, where no commercial return is yet possible.
National research councils, philanthropies, ODA agencies
Capacity and training grants
Pre-revenue
Build the people and platforms a pipeline needs — medicinal chemistry, genomics, data science, regulatory science.
GIZ, Science for Africa Foundation, H3D Foundation, AIMS
Concessional and development loans
Early revenue
Below-market debt that lets a manufacturer or health business build before it can service commercial terms.
KfW, development banks, DFIs
Blended finance
Crossing the valley
Public or philanthropic capital that absorbs first-loss risk so private investors can enter at acceptable returns.
Global Innovation Fund, IFC, specialist blended-finance vehicles
Equity and venture capital
Post-revenue
Growth capital for businesses with a proven product and a route to market.
African venture capital funders, angel networks, venture studios
Pooled funds
Any stage
Multiple funders behind a single instrument and a single set of priorities, reducing duplication by design.
The Beginnings Fund, Grand Challenges partners
Market-shaping mechanisms
Market creation
Demand guarantees, advance purchase commitments and pooled procurement that give manufacturers a bankable case.
MedAccess, Unitaid, Africa Pooled Procurement Mechanism
Where the money is needed

Priority investment areas

Drawn from the sessions, call-to-action votes and delegate polls of the 2025 Forum.

Drugs, vaccines and diagnostics
Local manufacturing

A constant pillar of AHRIFF since 2022, with a standing community of practice working with Unitaid and multiple ecosystem builders. The blockers are regulatory harmonisation, AfCFTA implementation and advance purchase commitments — not scientific capability.

The fastest-growing burden
Non-communicable diseases

The NCD burden is growing quickly in Africa, but the pattern is not reflected in funding agendas set outside the continent. Prevention research and the integration of AI and big data were the two most popular funding priorities in the delegate poll.

Africa's genetic richness
Precision medicine and genomics

Little clinical trial or post-marketing surveillance work has historically been done in Africa. Investment should focus on building population data for translational pipelines, coordinated through frameworks such as the EU–Africa PerMed project.

Already built, ready to leverage
Pathogen genomics and surveillance

The Africa CDC Pathogen Genomics Initiative represents a sizeable existing investment in training and surveillance capability. For funders looking to drive genomic surveillance in Africa, there is no need to duplicate it.

Preclinical through diagnostics
Antimicrobial resistance

LifeArc has refocused its strategy on AMR, spanning the PACE preclinical programme, new therapies for drug-resistant infections, diagnostics and devices, and the Fleming Fund.

Highest-burden regions
Maternal, newborn and child health

The $525M Beginnings Fund pools 14 named funders and several anonymous donors to strengthen health systems, scale evidence-based care and improve access around childbirth.

Cost-effective at scale
Neglected tropical diseases

The END Fund directs philanthropic capital into mass drug administration and health system strengthening for intestinal worms, river blindness, trachoma and lymphatic filariasis.

A crowded pivot
AI and health data

Global funders have pivoted sharply towards AI, creating a complicated matrix of activities in Africa. The talent pool exists — AIMS runs a residential MSc with Google DeepMind where 4,000 applicants compete for 40 places.

Working models

Pooling capital instead of competing with it

The Beginnings Fund is the clearest example to come out of recent AHRIFF discussions: a $525M pooled fund created by a collaboration of major global health funders to accelerate maternal and newborn survival in Africa.

It works because the funders agreed the priorities before the money moved, targeting high-burden regions and coordinating closely with governments and local partners rather than each running a parallel programme

Africa Pooled Procurement Mechanism

Leveraged to create scalable, sustainable demand — the precondition for any manufacturer building capacity on the continent.

Faith-based medical schemes

Piloting pooled procurement with the private sector and faith-based schemes emerged as a viable route to catalysing demand guarantees.

New chemical entities

Support for NCEs facing single-source supply, limited policy support and higher initial prices than the treatments they replace.

Platforms already built

One of the most repeated messages of the 2025 Forum: understand what exists before funding it again. These are programmes with sizeable investment already in place that new funders can leverage.

Africa Pathogen Genomics Initiative
Africa CDC

Genomic surveillance capability and training across the continent.

Grand Challenges African Drug Discovery Accelerator
GC ADDA

Medicinal chemistry training and drug discovery capacity in African institutions.

RAFIKI
EU partnership

A collaborative training project building African drug discovery expertise.

H3D Foundation
University of Cape Town

Online training, the Global Health Mentorship Programme and an API manufacturing programme.

Clinical research ecosystem platform
nuvoteQ Foundation

An AI-enabled platform mapping the connected ecosystem for clinical research across Africa.

ESSENCE Network
World Health Organisation

A long-standing coordination network for research capacity funders.

Anyone looking to become involved in drug discovery and API manufacturing in Africa — look no further.

AHRIFF 2025 — on the industry-linked drug discovery training programmes established across the continent