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The Power of the Rising Development Generation Africa
The Power of the Rising Development Generation Africa
IFC and Partners to Mobilize Up to $1 Billion to Strengthen Private Health Care
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A new report from IFC, a member of the World Bank Group, says spending on health in Sub-Saharan Africa is expected to double over the next 10 years. Investments of $25-30 billion will be needed to meet the demand, with the private sector playing a key role. Entitled The Business of Health in Africa: Partnering with the Private Sector to Improve People’s Lives, the report says the private sector already plays a significant role in delivering and financing health care for the region’s people. On average, the private sector delivers 50 percent of health care goods and services. The report, partly financed by the Bill & Melinda Gates Foundation, has prompted IFC and its partners to announce a new strategy for addressing Africa ’s health challenges, a major aspect of the region’s poverty. This involves mobilizing up to $1 billion over the next five years in investment and advisory services to boost socially responsible health care.



“This is a chance to increase access to health care for millions of Africans,” said Lars Thunell, IFC Executive Vice President and CEO. “If we can get all the critical players – governments, donors, investors, and providers – to leverage the private health sector and integrate it effectively with public systems, we can also greatly improve the quality of care.” Thunell added, “The private sector already provides about half of health care goods and services in the region. And a poor woman in Africa today is as likely to take her sick child to a private hospital or clinic as to a public facility.” “I am delighted to see IFC moving forward with this new investment strategy, which is a promising way to improve access to important health services,” said Tadataka Yamada, M.D., President of the Bill & Melinda Gates Foundation’s Global Health Program. “IFC’s report underscores the significant role the private sector in Sub-Saharan Africa plays in delivering health interventions, including critical services to the poor. It also makes a compelling investment case for private capital seeking financial and social returns on investment.”



The report had input from a wide range of stakeholders, including governments, investors, and civil society. It makes clear that the private sector – for-profit as well as not-for-profit institutions – is only part of the solution and that it must work with the public sector to develop viable, sustainable, and equitable health care systems. But it says t he private sector is sometimes the only option for people living in remote rural areas and urban slums. By 2016, Africa ’s health care expenditure is likely to reach $35 billion, up from $17 billion in 2005. The report points out that people in Sub-Saharan Africa have the worst health on average in the world. It suggests that donors and governments consider using private providers and risk-pooling programs to reach the poor.



IFC will partner with donors, development finance institutions, and other entities to mobilize up to $850 million for development of a socially responsible private health sector in Africa over the next five years. IFC and its partners will also mobilize up to $150 million for a number of initiatives to improve the operating environment for private health care organizations. (See attached Fact Sheet for more information.) IFC’s efforts form a key part of the World Bank Group’s larger health, nutrition, and population strategy, and they reflect a commitment to helping African countries reach the Millennium Development Goals by 2015. “The report from IFC is the most comprehensive analysis to date of the private health sector in Sub-Saharan Africa,” noted Prof. Eyitayo Lambo, a leading international health economist and former Minister of Health for Nigeria , who served on the project’s steering committee. “IFC’s new strategy reflects important first steps to act on the report’s findings. It suggests new ways for health care organizations to access capital and world-class advisory services while working to strengthen the business climate. I am optimistic that it will create an environment for change, offer practical solutions, and facilitate sustainable investment.”



Guy Ellena, IFC Director, Health and Education, concluded, “IFC is committed to supporting private health care in Sub-Saharan Africa to improve people’s health and reduce poverty, and joining forces with our partners will help us understand what works and what doesn’t. I am very happy to note that the African Development Bank was one of the first development finance institutions that supported the initiative and agreed to collaborate with us in establishing the equity investment vehicle, a key component of our strategy.” Going forward, IFC and partners will continue to engage with stakeholders. A series of health and investment forums in Cameroon , Kenya , Nigeria , Senegal, and South Africa and civil society meetings in Europe are planned for the first quarter of 2008.



About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org


December 23, 2007 | 10:45 AM Comments  0 comments

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