Health sector investments present an opportunity for the US International Development Finance Corporation (DFC) to demonstrate meaningful global leadership and refocus on its development mandate, driving broader health benefits and contributing to global economic recovery. DFC’s early days have been defined by a mixed record, notably in the health sector. Still, in the context of the pandemic’s health and economic impacts, the agency is well positioned to help strengthen pandemic preparedness and expand equitable access to health innovations in low- and middle-income countries through investments in private sector manufacturing and delivery capacity.

This paper explores how DFC can strategically invest in health while balancing sometimes competing policy imperatives related to health equity, commercial viability, and foreign policy interests. We first provide an overview of the development finance landscape in the health sector and select DFC healthfocused investments to date. We then suggest three high-impact engagement opportunities in the health sector for DFC to consider, including regional manufacturing hubs for health supplies; R&D incentives for biotechnology; and robust supply chains for health-adjacent services and delivery models.

Lastly, we outline key principles to guide future DFC health sector investments.