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IFC, IFU and PROPARCO Provide More Than $100 Million in Equity to Improve Healthcare in Egypt and Morocco
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IFC, a member of the World Bank Group, IFU, the Danish Investment Fund for Developing countries, and PROPARCO, member of the Agence Française de Développement (AFD) group, are providing an equity financing package of up to $108.5 million to Humania, a private healthcare company, to help improve medical care in Egypt and Morocco
The current package includes $45 million for IFC’s own account and $63.5 million mobilized from other investors, including $43.5 million from IFU on behalf of the Danish SDG Investment Fund, and $20 million from PROPARCO.
The financial support will help Humania develop a network of high-quality tertiary hospitals in Egypt and Morocco. The project comes as the COVID-19 pandemic puts pressure on healthcare services in the Middle East and North Africa. For IFC, this is the second partnership with Humania this fiscal year. In December 2019, IFC spearheaded an innovative Islamic financing package worth up to $125 million for the company, which is part of the Saudi Arabian healthcare group Bait Al Batterjee. With these two partnerships, Humania North Africa has become a $360 million healthcare platform.
“Our partnership will help redefine private sector’s contribution to healthcare in these countries by building and operating hospitals in line with best global practices,” added Humania & BAB Vice Chairman Makarem Batterjee.
Initially, Humania plans to build a new hospital in Alexandria and a medical tower in Cairo, Egypt. The project will also include a new high-quality multi-speciality hospital in the new eco city of Zenata, Morocco. Combined, the two hospitals will have nearly 600 inpatient beds and 240 outpatient clinics.
Humania’s growth is considered key in both countries where there are shortages of doctors and hospital beds.
Egypt’s healthcare sector needs $60 billion in investments by 2050 to meet rising demand for medical services, while Morocco is facing a need to improve healthcare delivery, especially for women and children.
Lars Krogsgaard, IFU’s Chief Investment Officer, said, “We are very pleased that we by investing in Humania can contribute to increasing capacity and introducing high-quality service to the underserved healthcare sector in Egypt and Morocco. We are convinced that the investment will benefit the patients and serve as an important part of the countries’ ambition to secure universal healthcare coverage.”
The project helps further IFC’s goal to expand the role of private medical providers in MENA, where public hospitals are struggling to keep pace with a rising demand for medical services. IFC has invested and mobilized more than $286 million in Fiscal Year 2020 to support healthcare in the region.
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