JSE-listed investment management company Investec, the Angolan Ministry of Finance, the Export Credit Insurance Corporation of South Africa (ECIC) and lead facility arranger Unicredit, supported by Italy’s export credit agency Servizi Assicurativi del Commercio Estero (SACE), have closed a commercial facility for €225-million that will part-finance the construction of three hospitals in Angola.

The project involves the building of a 17 200 m², 200-bed facility in Huambo; a 10 112 m², 100-bed facility in Luena; and a 9 970 m², 100-bed facility in Cabinda, by hospitals and healthcare facilities developer Vamed.

The hospitals are expected to be completed within five years, with €14-million in South African exports envisaged to be realised through the intra-African trade transaction, Investec said in a statement on January 13.

“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 role in helping to address the ongoing challenges of providing sufficient coverage and addressing access to high-quality health centres,” says Angolan Ministry of Finance public debt management director-general Dorivaldo Teixeira.

“Additionally, 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.”

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,” Teixeira said.

The transaction is an example of African agencies, governments and financial institutions working together to promote trade and social development within the region, said Investec Bank export and agency finance global head Brian Irvine.

“The project contributes meaningfully to the United Nations’ 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,” he said.

“This was our third major transaction with ECIC in recent times, and we were also pleased to work with the Department of Trade, Industry and Competition in opening up export opportunities for South Africa,” he added.

“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,” noted ECIC acting CEO Mandisi Nkuhlu.