Last week JP Morgan announced the launch of a new investment fund for Africa. And hold on here…..the new fund is going to target…..pharmaceuticals!
Yes, just what Africa needs, more investment in intellectually protected pharmaceuticals. And just so that investors in the new fund not only feel good about “investing in Africa,” the Gates Foundation will back-stop losses.
The Global Health Investment Fund (GHIF) is targeting new pharma and diagnostic tools.
This is lazy philanthropy. Lazy because JP Morgan is simply doing what it always does, only here its pharmaceutical investments happen to target Africa. Lazy. And lazy on the investors’ part because they have potential losses protected. It’s really too bad the Gates Foundation is spending money to do this.
And the Fund is rather small at $94 million.
“I look at it no different than a country store. If I open one store, I would hire the local kids for the summer, give to local little league teams, be part of the community….”said JP Morgan chief, Mr. J. Diamond to the Financial Times.
We’d much rather see efforts in sustainable delivery including healthcare infrastructure such as clinics, telemedicine and hospitals rather than one more “store for the local kids.”