Tamar Kahn
19 December 2007
Cape Town — A consortium led by SA's biggest private hospital group, Network Healthcare Holdings (Netcare), has pipped rival LifeHealthcare to be named preferred bidder by the Lesotho government for a contract to build and manage an R800m public hospital in Maseru.
This is Netcare's first foray into a developing country since it quit Rwanda in the late 1990s during the genocide.
The group, which began buying UK private hospitals after increasing scrutiny by competition authorities limited its expansion in SA, is exploring public-private partnership opportunities in African countries, including Southern African Development Community nations and Uganda, says Netcare head of group stake- holder relations Victor Litlhakanyane.
"It gives us an opportunity to show we can provide quality health care that is affordable in developing countries."
Lesotho will put up 43% of project costs, and the Netcare-led consortium will provide the rest.
Netcare has 40% in the investor group, which includes Afri'nnai, an investment company set up by Bloemfontein doctors (20%); Excel Health, an investment company for Lesotho doctors (20%); Mohloli, investment arm of the Lesotho Chamber of Commerce (10%); and BWI, a Basotho women's investment firm (10%).
Litlhakanyane says the consortium will fund the deal with debt (80%) and equity (20%), and is in talks with institutions.
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