Investing in Innovation (i3), a Gates Foundation-backed initiative that funds healthcare innovators across Africa, has announced a significant reduction in its cohort size.
This decision follows the US government's "stop work" directive issued on January 25th. The move has sent ripples throughout the development community, raising concerns about the future of healthcare funding globally.
i3, which launched in 2022, has supported 60 African startups, including Wella Health and Figorr. Last week, the organisation opened up applications for a new cohort of 15 startups, a decrease from the 30 startups supported in 2024.
However, in light of the recent directive, i3 has further scaled back its cohort size to just seven growth-stage startups focused on developing pharmaceutical solutions.
"The 'stop work’ directive for US aid issued on January 25th intensifies the need for locally-driven, market-creating approaches to health product distribution and service delivery across Africa," Dr. Uchenna Igbokwe, CEO of SCIDaR, said in a statement.
i3 receives funding from a consortium of organisations, including the Bill & Melinda Gates Foundation, pharmaceutical giants like Merck Sharp & Dohme (MSD) and Sanofi’s Global Health Unit, and other healthcare-focused foundations such as Cencora, Endless Foundation, HELP Logistics, and Chemonics. The program is administered by Salient Advisory.
Healthcare in Africa faces significant funding challenges. For instance, Nigeria’s 2025 health budget allocation of ₦2.48 trillion represents only 5.18% of the national budget.
This figure falls far short of the 15% target set by the Abuja Declaration, an agreement signed by African Union nations to allocate at least 15% of their annual budgets to health. Consequently, African healthcare initiatives heavily rely on external funding from organisations like those supporting i3.
The reduced cohort size comes at a time when health tech startups are already experiencing a decline in funding and raises concerns about the sector’s ability to attract necessary investment. It also casts a shadow on the prospects for future growth and innovation in African healthcare.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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