The IFC, a member of the World Bank group, the IFU, the Danish Investment Fund for developing countries, and PROPARCO, a subsidiary for the private sector of the French Development Agency (AFD) group, have made a capital investment of $ 108.5 million in Humania North Africa (Humania), a platform of private hospitals, helping to improve medical care in Egypt and Morocco. 

“We are very pleased to continue to support Humania, our long-standing partner and client in the health sector,” said Sergio Pimenta, IFC vice-president for the Middle East and Africa. “Today’s agreement demonstrates the strength of our partnership with IFU and Proparco. This project is a good example of how the private sector can be used to expand access to medical care, build human capital, improve social inclusion and stimulate innovation in health systems in the Egypt and Morocco ”.

Here Is What You Need To Know

• The investment envelope includes a contribution of $ 45 million for the IFC and $ 63.5 million mobilized from the IFU up to $ 43.5 million on behalf of the Danish investment fund SDG, and $ 20 million for PROPARCO.
• The financial support will help Humania to develop a network of high quality tertiary hospitals in Egypt and Morocco. This project comes at a time when the COVID-19 pandemic is putting pressure on health services in the Middle East and North Africa. For IFC, this is the second partnership with Humania in this fiscal year.
• In December 2019, IFC enabled innovative Islamic funding in the amount of $ 125 million for Humania, which is part of the Saudi health group Bait Al Batterjee (BAB). Thanks to these two partnerships, Humania North Africa will become a healthcare platform investing more than $ 360 million in the region.

“Our partnership with IFC, IFU and Proparco will help us make significant investments at a time when demand for quality health care is increasing,” said Sobhi Abdul Jalil Batterjee, President of Humania & BAB. “It will allow us to provide affordable, quality health care, including specialized services, while Egypt and Morocco face COVID-19.”

“Our partnership will help redefine the contribution of the private sector to healthcare in these countries by building and operating hospitals in accordance with global best practices,” added Makarem Batterjee, vice president of Humania & BAB.

• As a first step, Humania plans to build a new hospital in Alexandria and a clinic to complement the Saudi German Hospital in Cairo, Egypt. The project will also include a new high-quality multi-specialty hospital in the new ecological city of Zenata, in Morocco, a new city supported and funded by AFD. 
• Together, the two hospitals will have nearly 600 hospital beds and 240 outpatient clinics. The Humania group already operates the Saudi German Hospital in Cairo with a capacity of 200 beds and is already a leader in the Egyptian market.
•  The development of Humania is considered essential in these two countries where there is a shortage of doctors and hospital beds. Egypt’s health sector needs $ 60 billion in investment by 2050 to meet growing demand for medical services, while Morocco needs to improve the delivery of health care, especially for women and children.

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Why The Investors Invested

According to Lars Krogsgaard, IFU Director of Investments:

“We are very pleased that by investing in Humania, we can help build capacity and introduce high-quality service to the healthcare sector in need.” in Egypt and Morocco. We are convinced that this investment will benefit patients and that it will be an important element in the ambition of these countries to ensure universal health care coverage. ” 

Khimdjee Djalal, Deputy Managing Director of Proparco, said: 

“At Proparco, we are very pleased to contribute, under the leadership of the Batterjee family and in partnership with the 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 Humania North Africa in helping to close the structural health care gap in the region and providing quality services to improve the quality of life for the population. This transaction is of particular importance for Proparco, because the region is currently facing the COVID-19 crisis which highlights the crucial need to develop quality and resilient health systems in countries like Morocco and Egypt ”. 

• The project contributes to IFC’s goal of expanding the role of private medical providers in the MENA region, where public hospitals are struggling to keep up with the growing demand for medical services. The IFC invested and mobilized more than $ 286 million in fiscal year 2020 to support health care in the region. 
• This investment also responds to new medical and social challenges linked to the recent global health crisis, as well as to PROPARCO’s objectives of supporting the construction and modernization of hospitals and private clinics, in order to guarantee sustainable improvement in healthcare. health. 
• PROPARCO has invested in more than 1,355 additional beds in hospitals by strengthening the complementarity of public-private partnerships for quality services

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.