(Ecofin Agency) - Together with the private equity fund Ascent Rift Valley II, Proparco made a major investment in the Kenyan health sector. Its partner in the deal had already invested in the sector. 

Development finance institution Porparco announced, today (July 12) the acquisition of a majority stake in Kenyan private healthcare facility Diani Beach Hospital. 

The investment was jointly made with the private equity fund Ascent Rift Valley Fund II (ARVF II), whose aim is to invest US$5-15 million in SMEs that have the potential to become regional champions. 

According to Dr. Kawaljeet Singh Rekhi, Founder and Director of Diana Beach Hospital, it “marks a significant milestone” in the hospital’s journey “and paves the way for our next chapter of growth and success.” 

“We are incredibly excited to welcome members of both Proparco and Ascent onto our board of directors, to leverage their unequivocal local and international expertise in the healthcare space to enhance and accelerate our ambitious growth strategy over the short- and medium-term," he added. 

Last June, Ascent Rift Valley II announced the acquisition of a “significant equity stake” in Valley Hospital Limited, a Kenyan primary, and secondary healthcare provider. With Proparco, it will help expand Diani Beach Hospital's healthcare offers, improving care quality. 

For Proparco, 600,000 inpatients and outpatients will benefit over the next five years. Damien Braud, Head of Equity for Africa and the Middle East at Proparco, explains that health is a key sector for Proparco. Meanwhile, Diani Beach Hospital is the main health care provider in the coastal area south of Mombasa in Kenya. It operates in a “largely underserved area” and has strong growth potential. 

Let’s note that the equity investment is made by Proparco in the framework of the Fisea + initiative, a facility set up to support very small businesses in Africa.

Chamberline Moko