London-based TLG Capital has granted a $2 million senior secured debt facility to a Ugandan pharmaceutical distributor to strengthen the supply chain for critical pharmaceuticals.
The deal marks TLG’s eighth healthcare investment across Africa, adding to its portfolio in countries like Nigeria, Liberia, and Côte d’Ivoire.
About The Deal
The private credit facility, structured as senior secured debt, prioritizes repayment and is backed by collateral, reducing risk for the lender while providing the distributor with essential funds to expand access to medicines. TLG’s $2 million facility enables the Ugandan distributor to address critical healthcare needs by ensuring a steady supply of pharmaceuticals.
Uganda has made remarkable strides in healthcare over the past 15 years, reducing child mortality by two-thirds and AIDS-related deaths by 60%. These gains stem from deliberate public policies complemented by private investments like TLG’s. According to Isha Doshi, TLG’s CFO, long-term capital deployment in healthcare delivers both financial stability and enduring improvements in national well-being.
This latest investment reinforces Uganda’s position as a case study for how private credit can accelerate development while offering steady returns. By targeting resilient sectors like healthcare, where demand remains strong, TLG is tapping into an opportunity that combines commercial viability with measurable social progress.
The Rise of Private Credit in Africa
Private credit is emerging as a vital financial tool across Africa, filling gaps where traditional banks face constraints. TLG Capital, with 48 investments and 31 exits across 20 African countries, exemplifies this trend.
Its newly launched Africa Growth Impact Fund II (AGIF II), backed by institutions like the IFC, Norfund, Swedfund, and Bpifrance, targets small and medium-sized enterprises (SMEs) in high-impact sectors, ensuring capital reaches areas with significant financing needs.
In frontier markets like Uganda, private credit offers predictable cash flows and risk mitigation through collateralization, making it an attractive option for investors navigating volatile economies. The healthcare sector, in particular, presents a dual benefit: stable returns and tangible ESG outcomes, appealing to a growing pool of global capital.