IFC has agreed to invest $6.75m in Mauritius-based CIEL Healthcare to help the company acquire and operate a chain of hospitals across sub-Saharan Africa.

Oumar Seydi, IFC Director for Eastern and Southern Africa, said “Private providers like CIEL Healthcare can support governments in Africa in improving quality and reach of health coverage.”

“IFC’s investment in CIEL Healthcare will help build an integrated network of hospitals in Africa, which offer reliable services at consistent costs,” he said.

The hospitals will offer high-quality, modern medical services, reaching an additional 150,000 patients per year.

CIEL Healthcare launched its network in Uganda through the acquisition of International Medical Group (IMG) in July 2015.

CIEL Healthcare aims to support IMG’s expansion plans to position IMG as the market leader for private healthcare in East Africa.

CIEL Healthcare will invest in renovating IMG’s hospital in Kampala in line with international standards, upgrading services in gynecology, general surgery, orthopedics, neurosurgery, critical care, cardiac and renal sciences.

The company is working with Fortis Healthcare, one of India’s leading integrated healthcare networks, to transfer skills and develop medical specialties in all its hospitals in Africa.

"By partnering with India’s Fortis Healthcare, CHL can ensure that health care in Africa keeps up with international in medical technology,” Seydi added.

IFC said that quality healthcare is a pressing need in sub-Saharan Africa, where medicine prices are among the highest in the world, and few hospitals offer specialized care.

Despite widespread poverty, 50% of health expenditure in Sub Saharan Africa is financed by out-of-pocket payments.

Africa’s health sector is fragmented across numerous clinics, hospitals and pharmacies, which results in unreliable quality and high costs for the consumer.

By acquiring and managing a network of hospitals, CIEL Healthcare aims to instill international best practices, standardize quality, bring in cost efficiencies, and offer a wider range of medical services in sub-Saharan Africa.

Along with IMG, the firm has also invested in Fortis Clinique Darné in Mauritius and Hygeia Nigeria, which owns Lagoon Hospitals in Nigeria.

Alex Alexander, Managing Director of CIEL Healthcare Africa, said “IFC’s investment in CHL helps us consolidate our capital base to further expand our healthcare network in Africa, which will in turn provide access to high-quality medical care to patients in Africa.”

“Our aim is to bring in best medical practices and technological innovation, along with our partner Fortis Healthcare. Today, we have the opportunity to demonstrate the efficiency and scalability of private healthcare in Africa," he said.

IFC is the world’s largest multilateral investor in private healthcare, managing an active portfolio of about $1.3bn worth of health investments.

IFC investments in service providers, pharmaceuticals and medical technology are aimed at promoting greater access to affordable, high-quality healthcare.