As pressure mounts on South Africa’s public health system and qualified medical doctors struggle to secure permanent posts, a new R75-million fund will now help medical professionals start and grow private practices.
The Johannesburg-based equity firm RH Managers has partnered with the Small Enterprise Development Finance Agency (SEDFA) to establish the Doctor Small Medium Enterprise (SME) Fund.
SA healthcare system takes strain
RH Managers CEO, Quinton Zunga described the fund as a direct response to structural pressures in the healthcare system.
“South Africa produces highly skilled medical professionals every year, yet many face limited employment opportunities in the public sector. Through the Doctor SME Fund, we are creating a practical solution — enabling doctors to become healthcare entrepreneurs.
“By supporting doctor-led enterprises in underserved communities, we simultaneously address access to care, professional underemployment, and local economic development,” said Zunga.
Healthcare for underserved communities
The initiative aims to address both limited access to healthcare in underserved communities and the ongoing underemployment of SA doctors.
The fund will back a range of doctor-led healthcare businesses, from clinics and diagnostic centres to mobile units, pharmacies and health-tech platforms. Each investment aims to expand access to care, create jobs and boost local economic activity while strengthening the healthcare system.
Up to R1-million for each small business
The R75-million fund offers senior debt financing of up to R1-million per small business. The loans are repayable over five years at interest rates of up to 5% a year. Funding packages may also include tailored capital and interest moratoriums, depending on the specific needs of each SME.
Beneficiaries will also receive hands-on operational support, including feasibility guidance, marketing assistance, and structured loan management systems aimed at strengthening long-term sustainability.
The investment process includes screening and credit checks, detailed due diligence and site visits, formal investment committee approval, funding agreement finalisation, ongoing monitoring and support, and potential eligibility for second-round funding upon successful repayment.
Response to withdrawal of U.S. PEPFAR funding
On Wednesday, Finance Minister Enoch Godongwana announced during his 2026 Budget Speech that the health sector will receive R21.3-billion funding over the medium term for compensation and employment of doctors.
The country suffered health sector job cuts after the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) funding was withdrawal for HIV/AIDS programmes.
In response, Godongwana said provinces would repurpose some funding to meet PEPFAR obligations.
