Hospital Holdings Investment B.V (HHI) a special purpose vehicle set up by Investment Fund for Health in Africa II (IFHA II) has acquired 50.4% of Nakasero Hospital, CEO East Africa Magazine can confirm.
“Yes it is true. We found we needed to improve on our current service and expand to provide some other services which we currently do not have and are needed. The shareholders of Nakasero hospital sat and agreed to look for an investor to come in with equity. That is how in our search we ended up with HHI,” Dr Ben Mbonye, the Chairman Nakasero Hospital confirmed to this reporter via Whatsapp.
He however declined to divulge other details of the deal.
However, according to our own sources, although details of the price are not yet clear, HHI is said to have acquired 1,787 shares of the total registered 3,541 shares from a number of the Hospital’s majority and minority shareholders.
Mercantile Global, a company owned by a 5 Indian businessmen living in Uganda and Nairobi, that include a Jaspal Phaguda, a the owner of Ezzi Stores that was previously the largest shareholder with 3,059 shares (86.4%) sold the biggest chunk- out of the that shed off 1,588 shares (44.8%), remaining with 1,471 shares (41.5%).
Montana Capital who held 100 shares, according to our sources reduced their stake to 67 shares while a Dr Robert Busingye, who previously owned 125 shares, sold of 75 shares remaining with 50. seventeen other minority shareholders each with shares ranging from 1 share to 50 shares either sold wholly, partially or did not sell.
Nakasero Hospital was started in 2009, by a team of Consultant Doctors with a common goal of setting up a world class hospital that would meet the healthcare needs of Ugandans and East Africans.
According to the hospital’s financials, the hospital has witnessed a steady 73% growth in revenue, from UGX15.5 billion in 2014 to UGX26.7 billion in 2017. As a result, the hospital recovered from a loss of UGX1.5 billion in 2014, making its first profit of UGX2.1 billion in 2016. In 2017, there was a 136% increase in profits to UGX5 billion.
Who is Hospital Holdings Investment B.V?
Hospital Holdings Investment B.V (HHI) is a special purpose vehicle set up by the Investment Fund for Health in Africa II (IFHA II). IFHA are private equity funds dedicated to small to medium size (equity) investments in private healthcare companies in Africa.
The private equity fund describes itself as investing in “private healthcare companies that operate in fast-growing markets and show unique advantages over the competition.”
IFHA predominantly focuses on companies active in care provisioning (hospitals, clinics and similar care providers), Health insurance, healthcare products manufacturing, wholesale and distribution of healthcare products. It also invests in health related/supporting industries, including education, ICT services, the management and administration of care facilities, as well as buildings, equipment and medical supplies.
According to their website, IFHA has 12 portfolio investments and €170 million (UGX708 billion) assets under management that include 40 clinics and 3 private hospitals.
Some of these portfolios include: AAR Holdings Limited (AAR)- the largest private healthcare insurance company in East Africa and AAR Health Care Holdings Limited, a leading medical service provider with health centers in East Africa and hospital operation in Kampala.
IFHA has also invested in CIEL Healthcare Limited (CHL) a wholly owned subsidiary of CIEL Limited, itself one of the leading industrial and investment groups in Mauritius with operations in numerous African and Asian countries.
CHL in June 2015 acquired a controlling stake in Dr Ian Clarke’s International Medical Group (IMG) that comprised of International Medical Centre (IMC)- a network of outpatient clinics throughout Uganda, International Hospital Kampala (Uganda’s largest private hospital), and IAA Healthcare, which provides medical insurance. IMG also includes International Medical Foundation (IMF), a charitable foundation, IMG Pharmaceuticals and the International Diagnostic Centre (IDC) which provides quality diagnostic services and wellness checks.
IFHA is funded by a mix of18 investors who include: The Netherlands Development Finance Company (FMO), Pfizer Inc, African Health Systems Management Company, International Finance Corporation (IFC), African Development Bank, European Investment Bank, Dutch Good Growth Fund, Achmea Pensioen- en Levensverzekeringen and Swiss Investment Fund for Emerging Markets.
Others include: Stichting Pensioenfonds ABP, the pension fund for government and education employees in the Netherlands and Stichting Social Investor Foundation for Africa (SIFA). Contributors to SIFA include: Achmea Holding N.V. is one of the largest suppliers of financial services in the Netherlands, ACHMEA, Aegon N.V- a multinational life insurance, pensions and asset management company headquartered in The Hague, SNS REAAL– a Dutch financial institution in insurance and banking which focuses on the private market and small to medium businesses as well as Heineken, Shell, and Unilever
WHO Director General visits Uganda to assess Ebola response
World Health Organization (WHO) Director General, Dr. Tedros Adhanom Ghebreyesus, is in the country to assess Uganda’s response to the current Ebola outbreak in Kasese District, Western Uganda.
Kasese is one of 127 Ugandan districts, located in western Uganda and 400km away from the capital, Kampala.
Dr. Tedros made a stopover in Uganda while on his way from the Democratic Republic of Congo (DRC) where he visited the Ebola hotspots, Butembo and Katwa. This is his third visit to Uganda since the Ebola outbreak was declared in August 2018 in DRC.
He was received by the Minister of Health, Hon. Dr. Jane Ruth Aceng and her technical teams, Mrs Rosa Malango the UN Resident Representative, Dr Yonas Tegyn the WHO Country Representative to Uganda and Dr Lisa Nelson, the Centers for Disease Control and Prevention (CDC) Director in Uganda, yesterday at Protea Hotel in Entebbe at 7:00PM.
In his remarks, Dr. Tedros pledged continued support to Uganda to contain this outbreak. “From our side, I would like to pledge that we will continue mobilizing global and regional support to control this outbreak as soon as possible. It is not clean until the outbreak in DRC is finished”
Dr Tedros commented on the seemingly declining trends in Butembo and Katwa. He said, “There appears to be a decline in Butembo and Katwa areas. However, in my discussions with my colleagues, we agreed to be very careful with optimism but very cautious optimism because the Ebola situation in DRC has been very unpredictable with up and down trends.
He further said that Mabalako where the Ebola outbreak was first confirmed in August 2018 has once again become a hot bed of new infections.
“Mabalako is now the hottest place where cases actually came from to Uganda” Dr Tedros noted.
Dr. Tedros explained that “I have accepted the assessment of the WHO Emergency Committee that although the Ebola outbreak in DRC is an emergency in the country and the region, it does not currently constitute a Public Health Emergency of International Concern (PHEIC).”
He also revealed that in December 2018, WHO requested international pharmaceuticals giant, MERCK to produce more doses of the ‘Ebola-rVSV’ vaccine, to continue supporting the outbreak.
In her remarks, the Minister of Health, Hon. Dr. Jane Ruth Aceng said that, the transition from a preparedness mode to a response mode was not difficult given that Ministry of Health and partners had invested heavily in ten months of preparations to handle any eventualities. However, she said, “The challenge is that we now have to again mobilize resources for the response phase.”
She appreciated the WHO for the support with the Ebola vaccines during the preparedness phase, where over 4,200 frontline health workers and other workers were vaccinated in Uganda.
“During this response phase, we have received a total of 3,400 doses of the vaccine. A donation of 400 doses from the DRC as a quick initial measure to kick start vaccination of contacts, frontline health workers and other workers who were not vaccinated, and an additional 3,000 doses sent in by WHO. All these arrived very timely and vaccinations commenced last Saturday, 15 June 2019 where over 20 contacts were vaccinated. Today, we expected to vaccinate over 70 people and the process will continue,” she said.
Dr Tedros is expected to meet the President of Republic of Uganda H. E. Yoweri Museveni on Monday, 17th June 2019 for a bilateral on the current Ebola outbreak that has spilled over to Uganda.
Dr Aceng appreciated the efforts and contributions of all partners in Uganda towards the containment of the Ebola outbreak.
The UN resident Coordinator, Rosa Malango appreciated the political commitment of Government in responding to emergencies. “I have discussed with Dr. Yonas, and agreed to meet on Monday 17th June 2019, to once again analyze the gaps and identify where support is needed in terms of financial resources” she said.
As of now, Uganda has no confirmed case of Ebola. Two suspect cases were under isolation in Bwera Ebola Treatment Unit as of Sunday 16th June. One of the suspect cases tested negative for Ebola and has been discharged, while results of the other suspect cases is pending.
The European Commission on 13th June 2019 announced an emergency funding of €3.5 million, of which €2.5 million is for Uganda and €1 million for South Sudan to strengthen rapid detection and reaction to Ebola cases. This is over and above the €17 million in EU funding for Ebola response since 2018 in the Democratic Republic of Congo and prevention and preparedness actions in Uganda, South Sudan, Rwanda and Burundi.
UNICEF, the UN Child Agency has provided over 5500 hand washing facilities to critical areas such as hospitals, schools and border entry points in 17 districts across Western Uganda.
The Government of Ireland has also stepped in with a donation of two all-terrain 4*4s to improve the mobility and logistics by Ministry of Health workers.
World Bank’s IFC considering USD70 million loan to Umeme
The International Finance Corporation (IFC) the largest global development institution and a member of the World Bank Group, has reported, they are considering lending up to USD 70 million (UGX263.2 billion) to Umeme Limited.
Umeme is Uganda’s largest power distributor.
In a disclosure posted on their website, IFC said they plan to raise a senior loan for up to USD 30 million from IFC’s own account, and up to USD40 million to be mobilized from other lenders- altogether USD 70 million.
IFC said in the disclosure that the debt financing will be used to support “Umeme’s next 6-year (2019-2024) capital expenditure program, which will mainly focus on: network upgrades to enable load growth and additional connections to support uptake of new generation, safety/reliability enhancements, and implementation of smart meters to continue improving collections and reducing commercial losses.”
“The Project will support the growing demand for electricity in Uganda, and contribute to ongoing efforts to increase access to electricity. This will help fulfil the Government of Uganda’s efforts to improve electrification rate from the current 27% to 60% by 2027, and complement the significant growth (almost double) in generation capacity expected by 2020 (from 183MW Isimba and 600MW Karuma dams, and small solar/hydros),” said IFC in their disclosure.
“In addition, the Project has potentially significant indirect and induced effects on value added and employment as Umeme’s network expansion plan focuses on zones with high electricity demand and economic growth potential. Finally, it will improve resilience of the main distribution network in Uganda and reduce losses, through adoption of advanced smart technologies, adequate maintenance and upgrade of ageing assets,” added IFC.
IFC further said that by availing more affordable commercial and institutional financing, which is not readily available in the Ugandan market, Umeme will be enabled to “increase the average maturity of its loans and free up cash flow for Capex.”
“IFC’s involvement and proposed structure will also provide comfort to existing commercial lenders to potentially increase their commitment to Umeme,” said IFC.
This disclosure, coming at the same time as government’s confirmation last week that it will renew Umeme’s 20-year concession comes in handy and is a growing show of confidence in the power distributor.
The financing, if approved will bring, the total amount of lending to Umeme by IFC to USD185 million over the last 10 years. Umeme, which has previously been hailed by the World Bank as “by far the most successful Public Private Partnership “in the previous past has attracted up to USD 265 million in funding from the International Finance Corporation (IFC), Standard Chartered Bank, and Stanbic.
In a recent interview with CEO East Africa, Patrick Bitature the Umeme board chairman, said Umeme will need to invest up to USD450 million in capital expenditure (CAPEX) alone. He however added that to create a robust enough distribution network to last the country for over 20 years, Umeme will need to invest between USD1 billion and USD1.5 billion over the next five to ten years.
To date, Umeme has invested $627m (UGX2.4 trillion) into doubling the distribution network to over 34,000km from the 16,000km it inherited and grown customer connections by more than 4 times- from the 290,000 inherited to 1,291,811 by end of 2018.
Gov’t refutes missing money allegations at BoU but confirms currency related scandal
Government has refuted claims that any money is missing at Bank of Uganda but confirmed an investigation is going on to establish how illegitimate cargo, found itself on a chattered plane carrying new BoU banknotes on April 27th.
On June 14th, nearly 24 hours after it was first reported by online media houses, government spokesperson and Executive Director of the Uganda Media Centre, Ofwono Opondo P’Odel told a hastily organised press conference that while there was no money missing.
“No arrests have been made, it’s just investigations of about six to eight Bank of Uganda officials in procurement, currency and legal for failing to do due diligence. Others are customs officials from the airport,” the Uganda Media Centre official twitter channel posted.
He however did not explain why it took nearly 50 days, for government to come out openly about the scandal.
Ofwono Opondo said that following the discovery on arrival in Uganda, that the cargo plane, belonging to a yet unnamed carrier, was carrying 5 more cargo palettes, BoU officials reported to the Governor, who then called in the Statehouse anti-graft Unit to investigate.
“”Governor of Bank of Uganda Prof Tumusiime Mutebile then wrote a letter to the Anti-Corruption Unit at Statehouse to conduct a special expeditious investigation,” Ofwono said.
Earlier statements by both the Statehouse anti-corruption Unit and Bank of Uganda had confirmed an investigation was going on, but declined to specify the nature of the crime and the extent.
Both a letter to the Anti-Corruption Unit at Statehouse to conduct a special expeditious investigation,” Ofwono said.
Lt. Col. Edith Nakalema’s State House Anti-Corruption Unit called it a “special investigation on a matter pertaining to the Bank’s procurement and supply chain activities” while a statement by Bank of Uganda Governor, called it “an anomaly in the inventory of the expected consignment.”
Mutebile in his statement said that following the anomaly, he “requested the Anti-Corruption Unit (ACU) of State House to investigate the matter.”
“The ACU has started investigations and Bank of Uganda is fully co-operating with the process,” Mutebile added.
Ofwono Opondo said that preliminary investigations showed that the extra 5 palettes belonged to 13 different entities that among others included the United Nations, USAID and city businessman Charles Mbiire.
When the story first leaked to the media, unconfirmed reports on several online media platforms said, Lt.Col Edith Nakalema’s unit raided the central bank this week and arrested five officials in the currency department over what is said to be unauthorised printing of vast sums of currency- said to be in excess of UGX90 billion, for private benefit.
It was also alleged that the money entered into the country via Entebbe International Airport, but never made it to the central bank’s strong rooms.
BoU’s Director of Communications, a one, Charity Mugumya was unreachable.
This reporter spoke to BoU Tumubweine Twinemanzi, the Executive Director, Bank Supervision and Mrs. Susan Wasagali Kanyemibwa, the Bank Secretary (Executive Director), who both declined to talk about the matter and referred this reporter back to the central bank’s spokesperson.
An answered questions remain
Even though government has refuted claims that any money is missing, it is unclear why it took more than a month to come out about the scandal.
It also remains to be understood why BoU senior officials initially denied knowledge of the scandal.
We will over the coming days unveil more details about the scandal.
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