Zipline to expand operations in Africa with US Department of State funding

Zipline has signed an agreement with the United States Department of State to expand its medical drone delivery service across Africa. The partnership could triple the number of hospitals and health facilities Zipline serves (from 5,000  to 15,000) and provide up to 130 million people with instant access to blood and medications. 

Under a new pay-for-performance model from the State Department,  Zipline will receive up to USD 150 million to expand its AI and robotics infrastructure that enables African governments to provide 24/7 delivery of essential medical supplies to hospitals and health facilities. As buyers of the service African countries will pay up to USD 400 million in utilisation fees. Funding will be released when governments sign expansion contracts and commit to pay for ongoing logistics services to ensure long-term sustainability. 

In some places where Zipline operates in Africa, the average time between when a health facility places an order to when it is delivered is 13 days. Zipline cut that to under 30 minutes for the facilities it serves in the country. 

Since 2016, federal and state ministries of health in Africa have procured and paid for Zipline’s services to achieve health and economic improvements in their countries. Zipline said that the partnership with the State Department signals a new era of commercial diplomacy and that Rwanda is expected to be the first country to sign an agreement under this new model.

“Rwanda and Zipline have been working together for years to harness technology for the good of our people. We have witnessed the extraordinary impact of drone delivery — saving time, saving money, and saving lives,” said Minister Paula Ingabire, Minister of ICT and Innovation, Government of Rwanda. “With this partnership, we will now expand to urban delivery, bringing these benefits to even more communities. We thank the US government for supporting Zipline’s expansion and for joining us in building the foundation for Africa’s future in healthcare and innovation.”  

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