Co-op Bank, IFC partner in health equipment funding
by Jacktone Lawi
International Finance Corporation (IFC) has announced that it is advancing a medical equipment facility to Co-operative Bank to help small and medium-sized healthcare providers.
The move follows the signing of an agreement between the two firms that aims to improve private sector healthcare delivery by enabling hospitals, clinics and diagnostic imaging centres to acquire the advanced equipment that can improve the quality and reliability of care provided. Makhtar Diop (pictured), the Managing Director of IFC, said that small- and medium-sized healthcare companies in East and West Africa often face difficulties when trying to access financing for the purchase or lease of equipment.
The medical facility comes with advisory services program to help small businesses in the healthcare sector strengthen their medical equipment procurement processes, financial management competencies and business planning.
“Small and medium healthcare businesses in Africa often struggle to access financing. IFC’s Africa Medical Equipment Facility, in partnership with Co-op Bank is changing the status quo,”said Diop. IFC’s current investment and advisory portfolio in Kenya stands at Sh96.4 billion.
Africa Medical Equipment facility is designed to bridge the gap between healthcare businesses seeking medical equipment and financial institutions and equipment manufacturers.
“Financing may not be available, or the terms may not be appropriate for the company. At the same time, equipment manufacturers may be unfamiliar with the market and unsure about the financing risk, limiting their ability to sell equipment in these countries,” IFC said.