The International Finance Corporation (IFC) has launched a $115 million health care firm targeting East and Southern Africa.
The deal was signed on the sidelines of the Investment for Africa Forum in Cairo.
The holding company will acquire and integrate targeted health care service businesses across the region.
Furthermore, IFC will partner with Investment Funds for Health in Africa (IFHA-II) to provide secondary and out-of-hospital care for middle to lower-middle-income patients.
IFC is investing $22 million in the Hospital Holdings Investment (HHI) holding company, an investment platform set up by IFHA-II.
Moreover, European development finance organizations Swedfund, Proparco, Finnfund and IFU, Danish Investment Fund for Developing countries support the initiative.
Hospital Holdings Investment will be IFC’s largest equity investment in health care in Sub-Saharan Africa, outside of South Africa. IFC also mobilized $43.2 million from other investors.
HHI expects growth from one hospital and 35 clinics to five hospitals and 52 clinics. In addition, the firm will be serving up to 1.8 million patients annually over the next five years.
Moreover, HHI will achieve targets by building new facilities and acquiring existing health care assets.
Investment Funds for Health in Africa (IFHA II) invests in private healthcare companies that operate in fast-growing markets and show unique advantages over the competition.