CDC Group and Novastar have co-invested US$17-million in mPharma, a pan-African healthcare company that operates in Ghana, Kenya, Nigeria, Zambia and Zimbabwe. mPharma was a startup founded by Greg Rockson in Ghana and the company is well-known for its ability to improve the efficiency of the pharmaceutical supply chain through its Vendor Management Inventory system already used in over 250 pharmacies in Ghana, Nigeria and Zambia. The funding is intended to develop efficiencies that will reduce the cost of essential medicines, thereby increasing access to healthcare in Africa. The company has assisted in managing the Covid-19 pandemic by providing 700,000 testing kits and medical equipment to 8 African countries.
CDC Group is a development finance institution that invests in Africa and South Asia in sectors such as financial services, infrastructure, health, manufacturing, food and agriculture, construction and real estate and education. CDC Group is wholly-owned by the UK Government through the Department for International Development (DFID).
Novastar Ventures is venture capital investor designed to provide flexible support, tailored to the company’s stage of development with its commited funds of over US$260-million. The firm is able to invest up to $250,000 in an unproven business model with high potential. Novastar Ventures has invested in Solar Now, Moko Furniture, mPharma, Penda Health, iProcure and Soko amongst many more. The new fund commitment makes it one of the largest venture capital firms in Africa that is backed by private family offices, CDC Group, European Investment Bank, Proparco and Norfund amongst many others. The stake acquired in mPharma was not disclosed.