13 Jan 2023

Angola to get three new hospitals, as Investec, government and banks partner

Investec partners with Angolan government, agencies and international banks in the building of three key hospitals in Angola

Investec has successfully closed a commercial facility with the Angolan Ministry of Finance, which will part-finance three hospitals in Angola, for a total project cost of EUR225m. Investec worked closely with Export Credit Insurance Corporation of South Africa (ECIC) and Unicredit S.p.A, the lead arranger of the facilities including facilities supported by Italy’s export credit agency, Servizi Assicurativi del Commercio Estero (SACE).

The project involves the building of a 17,200m2, 200-bed facility in Huambo, a 10,112m2, 100-bed facility in Luena and a 9,970m2 100-bed facility in Cabinda - with VAMED, a global leader in the provision of hospitals and healthcare facilities. The hospitals are expected to be completed within five years, with EUR14m in South African exports envisaged to be realised through the intra-African trade transaction.

“The Government of Angola is committed to strengthening partnerships to accelerate initiatives aimed at improving health in Angola and the building of these three hospitals will play a strong role in helping to address the ongoing challenges of providing sufficient coverage and addressing access to high-quality health centres,” says Dorivaldo Teixeira, Director General, Public Debt Management at the Angolan Ministry of Finance. 

“In addition, the shortage of qualified personnel will also be addressed through VAMED’s commitment to a two-year joint hospital management process, once each facility is built, working with the hospital teams to ensure the facilities are operated optimally.”

Teixeira adds that Angola’s chief challenge in healthcare lies in the management of diseases such as malaria, a leading cause of death, illness and absenteeism. “Malaria accounts for approximately 35% of curative care, 20% of hospital admissions, 40% of perinatal deaths and 25% of maternal mortality,”.

“Angola is also vulnerable to outbreaks of diseases like yellow fever, cholera and zika, and communicable diseases account for about 50% of deaths; while tuberculosis remains a challenge as well. These hospitals will play an important role in the management of these diseases.”

Brian Irvine Global Head of Export and Agency Finance at Investec Bank says the transaction is an example of African agencies, governments and financial institutions working together to promote trade and social development within the region. 

“This was our third major transaction with ECIC in recent times, and we were also pleased to work with the DTIC in opening up export opportunities for South Africa,” says Irvine. 

“The project also contributes meaningfully to the UN’s Sustainable Development Goals (SDGs), notably SDG 3 (good health and wellbeing) and SDG 9 (industry, innovation and infrastructure) however the impact goes beyond the SDGs themselves. New infrastructure creates jobs and opportunities beyond the facilities themselves, while the ability to treat and manage diseases will have a positive impact on those most vulnerable.”

“We are pleased to once again be working with Investec in this important project that will strengthen ties between Southern African countries through the power of trade and investment,” concludes ECIC’s Acting CEO, Mandisi Nkuhlu.