On June 8, 2011, MIGA issued a guarantee covering an equity investment by ADC Financial Services and Corporate Development (ADC) of Mauritius in Resolution Health East Africa Limited (RHEAL) in Kenya. MIGA’s coverage of $2.0 million is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
ADC is planning to take a 39.4 percent equity stake in RHEAL, an existing Kenyan Health Insurance Provider. ADC’s investment is aimed at improving the performance of the company through the introduction of new sales techniques and products; international best practice in processing and management; improved procurement and supplier management; and improved financial controls and corporate governance. The medical insurance sector in Kenya and other East African economies offer attractive growth opportunities. ADC’s investment will help RHEAL achieve its growth objectives in the region.
ADC’s investment in RHEAL will allow the company to expand its delivery of medical insurance both in Kenya and Tanzania, as well as other East African countries in the future. RHEAL structures medical insurance packages that offer insurance for pre-existing conditions such as HIV/AIDS. Additionally, RHEAL offers access to quality healthcare through offering affordable medical insurance.
This project is aligned with the World Bank Group’s Country Partnership Strategy for Kenya. The Bank Group has committed to working together to increase access to financial services, further regulatory reform, and develop capital and local securities markets, with a goal of supporting key economic and social development needs, including infrastructure and housing development, and investments for pension and insurance funds. The project is also aligned with MIGA’s objective of supporting investments into countries eligible for concessional lending from the International Development Association. The project was underwritten through MIGA’s Small Investment Program.