Tanzania’s ambition to achieve Universal Health Coverage (UHC) by 2030 rests not only on public investment, but also on the resilience and growth of its private health sector. Across the country, private providers from small dispensaries to pharmacies and diagnostic centres often serve as the first and sometimes only point of care, particularly in rural and underserved communities.
Yet, despite their central role, many of these enterprises have long operated under severe financial constraints.
With more than 3,600 private health facilities and over 18,000 pharmacies and accredited drug outlets, many providers remain locked out of formal credit systems due to strict collateral requirements, lengthy approval processes and risk perceptions from traditional lenders.
“We have many committed providers who want to grow their facilities, but access to capital has remained a major barrier,” said Dr Heri Marwa, Country Director of the Medical Credit Fund II Tanzania Limited (MCF). “Without appropriate financing, even basic improvements in service delivery become difficult to achieve.”
It is this structural gap that the MCF–Vodacom Tanzania partnership seeks to address through Afya Mkopo, a digital financing solution that blends healthcare-focused lending with mobile money technology.
The initiative integrates MCF’s sector expertise with Vodacom’s M-Pesa ecosystem to expand access to credit for healthcare small and medium enterprises (SMEs).
At the core of the model is the use of digital transaction data to determine creditworthiness, replacing traditional collateral-based lending systems.
“The Afya Mkopo service enables health entrepreneurs to receive payments, manage suppliers and access credit based on real business activity recorded through M-Pesa,” said Kilian Kamota, Head of Merchants at Vodacom Tanzania. “This is a shift from traditional lending models to a data-driven system that reflects how businesses operate in real time.”
Through the platform, healthcare providers can access unsecured loans ranging from Sh200,000 to Sh100 million. Once approved, funds are disbursed directly into mobile wallets, while repayments are automatically deducted as a small percentage of daily transactions.
The initiative is also addressing one of the most persistent challenges in healthcare delivery—cash flow instability, particularly for facilities serving insured patients whose reimbursements are often delayed.
In Dar es Salaam, MDM Hospital has used Afya Mkopo to stabilise operations and maintain continuity of care.
“We treat insured patients on credit and often wait for reimbursement, which can take time,” said Dr Deogratius, a representative of the hospital. “This financing has helped us maintain a steady supply of medicines without interruption.”
He added that the automated repayment system has improved efficiency. “Once a digital payment is made, a portion is automatically allocated to loan repayment. The process is seamless and transparent.”
The model reduces risk for both lenders and borrowers while ensuring discipline in repayment. More importantly, it allows providers to focus on service delivery rather than liquidity pressures.
“We are seeing a shift where providers are no longer just surviving, but actually growing,” said Dr Marwa. “When financing is predictable and accessible, it directly improves healthcare delivery.”
Beyond financing, MCF also provides technical support aimed at improving quality standards in healthcare facilities. This dual approach ensures that access to capital is matched with improvements in service delivery and patient safety.
“We do not only provide financing,” Dr Marwa said. “We also work closely with providers to strengthen quality and ensure sustainable operations. That combination is what drives long-term impact.”
The success of Afya Mkopo is closely tied to Tanzania’s robust mobile money ecosystem, which has expanded financial inclusion across urban and rural areas.
“Without mobile money infrastructure, reaching providers in remote areas would be extremely difficult,” said Kamota. “Digital systems have made financial inclusion scalable and efficient.”
As Tanzania moves closer to its 2030 UHC goals, stakeholders say such partnerships demonstrate how technology and finance can be leveraged to strengthen health systems. The model enables providers to invest in equipment, expand services and improve infrastructure in ways that were previously out of reach.
For many entrepreneurs, the shift is already visible in their day-to-day operations.
“Previously, expansion was only a dream due to financing constraints,” said Kamota. “Today, providers can grow based on their performance and demand.”
MCF, which operates in several African countries including Kenya, Uganda, Nigeria and Ghana, views the Afya Mkopo model as part of a broader strategy to strengthen private healthcare systems through innovative financing.
In Tanzania, early results point to a clear transformation more resilient clinics, better-equipped pharmacies and healthcare businesses increasingly capable of meeting rising patient demand.
As Dr Marwa summed it up, “When you empower providers financially and technically, you are not just supporting businesses—you are strengthening the entire health system.”
In a country where private providers remain a critical pillar of healthcare delivery, the MCF–Vodacom partnership is emerging as more than a financial innovation. It is becoming a practical pathway toward a more inclusive and resilient health system.
Delfina Thomas is the Country Manager at Medical Credit Fund (MCF)
