Zimbabwe Public Health boosted by ECA Financing

Funding has been structured for progression of NMSI’s $210 million Zimbabwe Rural Healthcare Facilities Programme for the delivery of five 60-bed District Hospitals and thirty 20-bed Health Centres; forming part of a broader plan to bring quality healthcare to the people of Zimbabwe.

In a ceremony held at the GTR Conference in Cape Town on 17th March 2023, Heads of Terms were signed for a dual-tranched $193 million ECA-backed facility by ECIC (Export Credit Insurance Corporation of South Africa); the lenders, Absa Bank and Standard Bank (as joint MLAs) and the Borrower, Ministry of Finance & Economic Development of Zimbabwe (MOF).

Arranged and advised by GKB Ventures and Sullivan & Worcester of the United Kingdom, the transaction has been structured to support the rural health infrastructure project being undertaken by NMSI.

Commenting on the milestone, Andrew Bvumbe, Head of Aid & Debt Management Office, Ministry of Finance said:

“This financing package is highly significant for Zimbabwe and the underlying ‘Built to Care’ rural healthcare project is a key priority for our nation. We are committed to it and to providing the funds for it.”

The initial phases of the project, valued at c. $25 million, have been funded by MOF in cash with the balance of the project to be funded by the ECA-backed structured finance package.

In a joint statement, ECIC, Absa and Standard Bank heralded the financing:

‘This structured financing ushers in an exciting re-emergence of Zimbabwe in international capital markets and the project, for the delivery of quality healthcare infrastructure for the people of Zimbabwe, represents a fine example of the effective combination of government, industry and the financial services sector delivering excellent outcomes.’

The initial phase involved the design of the Health Centres and the construction and equipping of the first eight facilities. The first of these new facilities, in South Harare and Bulawayo, have already been completed. The new Health Centres and Hospitals will provide improved access and enhanced patient care in local districts, reducing sickness burden through public health initiatives and localized patient care.  The project will provide a range of economic and social benefits, including jobs for local construction workers and contractors, operational work for health workers, as well as additional capacity of 365,000 patient bed nights annually in rural communities.