IFC and Partners to Mobilize Up to $1 Billion to Strengthen Private Health Care in Africa--New Report Sees Huge Demand for Investment over Next Decade

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 the 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. 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.

(To read the report, please go to www.ifc.org/HealthinAfrica).

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.