Lagos, Nigeria, November 30, 2020 – Yako Medical Africa, Ltd, is a medical technology and services platform with a mission to deliver affordable access to quality healthcare to people in underserved communities announces an organizational change in response to the devastating impact of the COVID19 pandemic on the market
The Board of Directors of Yako voted to nominate Ngu H. Morcho, Founder and Managing Director to the position of Chairman of the Board of Directors effective October 30, 2020. As Chairman, Morcho will continue to lead strategic partnerships and impact financing and support the company to recruit a new executive team tasked with the daily tasks of delivering on a digital-first strategy. This move is in line with the growth strategy approved by the Board in 2019, to develop YakoCares, a subscription-based enterprise-grade management platform that manages pandemics (COVID19), virtual and standardized direct primary care clinics, and a medical equipment leasing and supply chain system through an integrated care ecosystem.
“Over the past 4 years we have leveraged our knowledge of innovative approaches in medical equipment financing and operations across India and other emerging markets to solve a pain point in poor access to affordable and quality healthcare in Africa. We developed a business model based on a shared risk pay per use medical equipment leasing service that received moderate yet promising response from the market. While factors like cost of capital and high cost of local currency debt made fundraising particularly challenging, the COVID19 pandemic exacerbated the macro/exogenous market risks. These included, but were not limited to, a highly fragmented health sector and recent civilians protesting police violence in Nigeria and civil unrest in Cameroon. These factors increase the risk of investing in healthcare projects with a primary focus on capital equipment leasing in Africa.
The mission of Yako Medical remains – to deliver affordable access to quality healthcare to all people. However, the approach requires a pivot to include a predictable revenue model and better back office supply chain management. This move should further strengthen our value proposition and impact story.” said Morcho.
Morcho will be replaced by Brent Jones, who will serve as interim CEO during the transition period until the Board of Directors secures impact funding and appoints a management team to drive daily execution. Jones is currently a member of the Board of Directors of Yako Medical and President of BECC Africa, LLC, the largest private shareholder group in Yako Medical. Jones has over 30 years of experience in senior management with GE Asset Management.
“Our group at BECC Africa consists of former senior executives with experience managing significant investments in emerging markets on behalf of the GE company and other US investors. We made the first private investment in Yako Medical with the recognition of both the need for better health outcomes and the opportunity for impact and hopefully above average financial returns. Though the COVID19 pandemic and travel restrictions significantly impacted the company’s ability to raise growth finance, it also presented us with an opportunity to reflect and validate the need for a move towards a digital-first strategy.
We continue to believe in the potential to make lasting impact in Africa through our investment in healthcare. We are encouraged by recent affiliations and validations of the Yako business model received through co-creation and collaborative action programs with industry partners and recent grant funding received from social impact organizations including Ashoka. We look forward to continuing to work with Ngu and the rest of the Board of Directors through this next period of growth. An immediate focus is to secure blended financing for our innovative program – Healthcare For All (HC4A), a digital platform to use healthcare to achieve social equity and serve as a multiplier for economic development and prosperity in underserved communities.” said Jones.
About Yako Medical Ltd:
Yako Medical Ltd. (www.yakomedical.com) is a medical technology and services platform with a mission to deliver affordable access to quality healthcare to people in underserved communities. Yako’s goal is to develop a subscription-based model for primary and specialty care with a focus on Non-Communicable Diseases such as cardiovascular disease, diabetes, cancer, and chronic respiratory diseases (NCDs). Yako was founded in 2016 by Ngu H. Morcho to solve pain points he saw across Africa while serving as Managing Director and Project Development Leader for GE Healthcare in West & Central Africa. Yako currently provides pay per use medical equipment leasing services to screen for cardiovascular diseases and operates teams in Nigeria and Cameroon.