Switzerland-based Blue Earth Capital provided N$198 million (about US$11 million) in debt to Rhino Park, a private hospital in Windhoek. This is the first African health investment by Blue Earth’s private credit team, Business Express understands.
“Our private credit strategies finance growing businesses that have an intentional footprint in impact, both social and environmental,” Blue Earth’s Amy Wang was recently quoted saying.
The capital will help the hospital introduce MRI imaging and mammography, along with solar panels to help the hospital shift to greener energy. Blue Earth’s loan includes embedded incentives for increasing preventative care and boosting clean energy use by at least 10%.
Blue Earth’s private credit strategy seeks market-rate returns. In Africa, “it’s been challenging finding the right relative-value opportunities that are able to deliver outsized impact with a financial return,” explained Wang.
The potential environmental impact of Rhino Park’s green energy transition helped Blue Earth make the case. Namibia’s grid relies on electricity imports from South Africa, a heavily coal-dependent country.
The transaction’s social impact angle is more complicated: The private hospital largely serves middle and high-income patients with access to health insurance and quality care. Financing preventative services in a public hospital could have a more direct impact on Namibia’s high maternal mortality rate.
“We had to look at where our tool is best utilized,” said Wang. “In this case, [that was] looking at leadership in setting industry standards, training capabilities and best practices for the healthcare ecosystem.”
Among the impacts Blue Earth is tracking in addition to those linked to its loan: the facility’s quality accreditation with COHSASA and how many nurses Rhino Park trains that go to work in the public health system.
Recently, it has been reported that a London- and Johannesburg-based growth capital investment manager Salt Capital has acquired Rhino Park Private Hospital in Windhoek.
Rhino Park first opened its doors as a day hospital with two operating theatres and a primary healthcare clinic 30 years ago. The hospital now features 120 beds and four operating theatres, and specialises in maternity and neonatal healthcare.