|TOP|The Bill & Melinda Gates Foundation and the World Bank's private sector arm announced earlier today plans to explore private health care opportunities in Africa.

US$2.6 million (£1,393,730) will be spent by the International Finance Corp. to examine how to improve health care delivery in Africa through aid, investment and advice to private hospitals, clinics, and other health care providers.

Recommendations are expected by February or March, followed by possible investments, officials said.
"Almost no foreign private sector companies are looking at Africa now," IFC health and education director Guy Ellena said.

"Say a South African company knows it can get a return on investment in five years (at home) but they may need 10 years elsewhere, we can help by taking half the risk on capital so their return comes in seven or eight years," he said.

Private providers now account for 60 percent of all health care services across Africa, and South Africa, Nigeria and Kenya have strong local private providers, he said.

Investments could help Africa meet its 2015 Millennium Development Goal targets on combating the spread of HIV/AIDS, malaria and tuberculosis, said Nigerian Health Minister Eyitayo Lambo.

"What's important is that African providers, private providers, have the resources ... to be able to improve what they are doing," said Lambo.

|AD|Sub-Saharan Africa's private health market, excluding South Africa, is estimated at US$18.6 billion a year out of a total market of about US$31.3 billion.

The size of that market could triple within a decade if Africa sheds corruption, continues to grow and necessary investments across the health care gamut are made, said Jack Shevel, founder and former chief executive of South African private health care provider Netcare (NTCJ.J: Quote, Profile, Research).

"I think IFC involvement is critical in accelerating this investment to Africa because when the private sector approaches government there's such a lack of trust," Shevel said.

IFC officials said there could be big opportunities in Africa for private health care providers, particularly for companies from India and other emerging markets accustomed to operating in developing countries.

According to IFC health specialist Scott Featherston, projects could range from construction of hospitals and clinics to delivering prescription drugs or offering insurance.