Life Healthcare was established in 1983 as a division of Afrox (African Oxygen Ltd, a subsidiary of the UK BOC Group) for the provision of healthcare services. Over the past three decades, the Company has grown rapidly via acquisition and organic growth with the growth primarily in the South African market. However, the Company also successfully established and operated a hospital business in the UK (which was recently sold). Today, Life is the second largest private hospital group in South Africa in terms of number of hospital beds and employer of approximately 14,000 people (historically disadvantaged South African individuals represent 96% of workforce). The Company owns 8,100 beds and manages a further 4,100 beds through public-private partnerships with government.

The Company is privately owned with approximately 43.3 percent owned by Mvelaphanda Group and Brimstone Investment Corporation. Other shareholders include Rand Merchant Bank (14 percent), Old Mutual Life Assurance South Africa (15 percent), Industrial Development Corporation of South Africa (5 percent), and management and staff (approximately 13 percent) and doctors (7%).

IFC is considering an investment in the Company to support the Project.

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	150.0

* These investment figures are indicative

The Company has its headquarters in Johannesburg, South Africa but has operations across South Africa and in Botswana.

The project is expected to: (i) Encourage significant investment between emerging markets; (ii) Result in the transference of world class hospital management expertise into new markets; and (iii) Increase access to high quality healthcare in underserved markets in the target countries.

(i) Assisting the Company to develop a stable, long-term shareholder base focused on creating value through the development of its business; (ii) supporting Life Healthcare execute its expansion into new markets through provision of appropriate financing as well as sharing of knowledge of emerging markets and introducing the Company to potential partner organizations, including existing IFC clients; and (iii) mobilization of other funds i.e. from IFC''s Asset Management Company (AMC).

This corporate investment is classified as Category B according to IFC''s Environmental and Social Review Procedure. Environmental and social issues associated with this project that will be evaluated during the appraisal include a review of the existing management system including the company’s management of hazardous and non-hazardous health care waste, effluent treatment and disposal, air emissions and occupational health and safety at existing operations. The existence and adequacy of disinfection and sterilization programs and employee training programs to prevent nosocomial diseases will also be assessed. Following the corporate review, visits to two current operations will be conducted to supplement the desk-top review of management systems and verify operational implementation of the management system. All of these issues will similarly apply to new facilities; as such the company’s capacity to manage environmental and social issues in operations that are geographically separated will be assessed. Further, the company’s approach to new developments with respect to site selection and land acquisition, facility design as well as life, fire and safety, and construction issues will be assessed.