Johannesburg, South Africa, June 10, 2024 – IFC and Lenmed Hospital Group (Lenmed) today announced a partnership to increase access to quality healthcare, especially in underserved communities, in South Africa, Botswana, Ghana, and Mozambique.
Under the partnership, IFC will provide a local currency, R200 million senior loan to Lenmed to help the company expand its healthcare services over the next four years through the acquisition of new facilities, the purchase of medical equipment, and by hiring and training additional medical staff. Lenmed will also expand the number of beds in its hospital portfolio from 2,318 to almost 3,000.
IFC's loan is part of a larger, syndicated loan package with three other South African lenders—Rand Merchant Bank, Ashburton Asset Managers, and ABSA Bank—totaling R2.5 billion. The combined financing will also support Lenmed's plans to expand into other African countries and help meet the company's refinancing and working capital requirements.
In addition to financing, IFC will also help Lenmed improve its environmental and social standards and ensure sustainability across its operations.
"We are extremely excited to have concluded this significant debt package with IFC and our other funding partners, which underscores the confidence in both our Group and the work that we do. This additional capital will allow us to continue driving towards achieving our ambitious growth strategy while, at the same time, fulfilling our core purpose of creating healthier and more prosperous communities across the African continent," said Amil Devchand, Lenmed's Chief Executive Officer.
"Our investment in Lenmed will increase access to quality healthcare in South Africa and in other African countries, enabling more people to access the services they need," said Cláudia Conceição, IFC's Regional Director for Southern Africa. "IFC complements public healthcare efforts by leveraging private sector funding and expertise to increase access and meet growing demand for services."
Lenmed caters for multiple income groups across all its markets. It provides acute healthcare services, including but not limited to, trauma care, cardiac services, paediatric care, maternal care, acute and emergency care, cancer treatment, orthopaedics, and neurosurgery.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
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About Lenmed Hospital Group:
Lenmed started its journey in 1984 striving to become a leading African healthcare provider. From humble beginnings in Lenasia, South of Johannesburg, Lenmed's mission has been to create healthy and prosperous communities through their current portfolio of 19 hospitals based in four countries in Africa including South Africa, Botswana, Ghana, and Mozambique. Lenmed provides over 200,000 patients with quality private healthcare each year, employs over 3,000 people and has over 700 practicing doctors. Lenmed offers all major medical and surgical disciplines, with a number of internationally accredited centres of excellence in the fields of cardiology, stroke, trauma and bariatric surgery.
