Atta Africa Financial Update

Executive summary
Africa's private healthcare sector has been booming in recent times depending on the country you look at - driven in no small part by a growing middle class.

As such, private equity funds have been ramping up investment in the health sector. Swedfund, Sweden’s risk capital company, and The Africa Health Fund (via Abraaj) have invested in The Nairobi Women’s Hospital, a leading private healthcare provider for women and their families in East Africa; and Abraaj recently lead a US$200m healthcare investment in North Africa.

According to reports, around 60 per cent of health care in Africa comes from private sources and 50 per cent of total health expenditure goes to private providers. Consequently, the vast majority of people in the region rely on private healthcare therefore the need for private sector investment in the health space is critical and has already proven to be a significant player in many countries that have a failed public healthcare system.

Kenyan hospital to raise US$181m for construction of country’s first paediatric clinic

  • Kenya’s oldest hospital, the Kenyatta National Hospital (KNH), is hoping to raise Sh17 billion (US$181m) from the private sector to fund the construction of the country’s first paediatric hospital
  • The 600-bed children hospital will be built at a cost of Sh5 billion (US$53m)
  • Looking to the private sector has become the hospital's strategy after a struggle to finance developmental initiatives as the government allocates just about Sh150 million (US$1.5m) for such purpose annually

Rwandan government crucial to country’s rejuvenation through tech

  • The Rwandan government has played a crucial role in boosting tech innovation and allowing the country to become one of the fastest growing economies on the continent (and indeed the world)
  • kLab is crucial to Rwanda’s vision of becoming a middle income and knowledge based economy by 2020
  • Launched in May 2012 with 20 members, it now has over 400 registered members and 30 startups using the space every day
  • The government has also driven the launching its first high-speed 4G/LTE network, launched late last year

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.