IFC, IFU and PROPARCO provide $108.5m to improve healthcare in Egypt and Morocco
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 with IFC, IFU and PROPARCO will help us make important investments during a time when the demand for quality healthcare keeps rising,” said Sobhi Abdul Jalil Batterjee, Humania & BAB Chairman “It will allow us to provide affordable, high-quality healthcare, including specialist services, as Egypt and Morocco contend with COVID-19.”
“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.
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.
“We are very excited to continue supporting Humania, our long-term partner and client in the healthcare sector,” said Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa. “Today’s agreement is a testament to the strength of our partnership with IFU and PROPARCO. This project is a good example of how the private sector can be leveraged to expand access to medical care, strengthen human capital, improve social inclusion and spur innovation in the health systems of Egypt and Morocco.”
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.”
Khimdjee Djalal, Deputy Chief Executive Officer, Proparco, said, “PROPARCO is very glad to contribute, under the impulse of the Batterjee Family and in partnership with IFC and IFU, to the development of the health sector in North Africa through Humania North Africa. We have full confidence in the experience of the Middle East HealthCare Company to help bridge the structural healthcare deficit of the region and provide quality services for the betterment of the quality of life of the population. This transaction has a particular importance for PROPARCO as the region is currently facing the COVID-19 crisis which highlights the critical need to develop quality and resilient healthcare systems in countries such as Morocco and Egypt.”
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.