OVERVIEW & CLINICAL FOCUS
EADG has partnered with international organizations to develop a 300-bed, state-of-the-art, Cardiovascular and Neurosurgery & Specialty Hospital in Addis Ababa, Ethiopia. EADG’s mission is to build an economically sustainable, center of excellence hospital that will deliver internationally accredited standard of care and become the catalyst for change in how healthcare is delivered in Ethiopia, the region and beyond. EADG will design, build, maintain and operate environmentally sustainable, cost-efficient and energy-saving green buildings.
EADG Hospital will be a tertiary hospital with a full complement of services. The hospital’s clinical area of focus will be Cardiovascular, Neurological and Oncology Centers of Excellence that will provide the full range of services and invasive procedures that will be the first of its kind in Eastern and the Horn of Africa.
EADG is a corporation organized in the USA, and it established a subsidiary in Ethiopia, EADG Healthcare City Centre PLC, to construct and operate the hospital.
- Project Cost = USD $113 M
- Equity/Loan Ratio = 40/60
- USD $10 M raised from founders for land, design, pile foundation and related activities
- Equity Gap: USD $34 M
- USD $25 M debt in BIRR committed from Commercial Bank of Ethiopia
- TDB Bank appointed lead debt arranger, in addition to USD $55 M in FX debt
- Established key partnership with a medical equipment integrator/supplier
- Partial Opening – December 2023
- Full Hospital Opening – December 2024
- Pile foundation construction – October 2020
- Superstructure – December 2022
Ethiopia’s economy has experienced strong growth over the past decade. This was achieved primarily through government-led infrastructure expansion and commercial agriculture development. Ethiopia aspires to become a middle-income country by transforming its economy from agriculturally based to one focused on industry and manufacturing.
The demand for advanced medical care services or tertiary care due to shortage of specialists, technology and facility is considerable. Ethiopia’s growing economy, increasing urbanization, and growing middle class, coupled with a young and increasing population with longer life expectancy, drive the demand. The implementation of health insurance schemes for both formal and informal sectors will improve access and place tremendous pressure and demand on the country’s healthcare system.
Capturing the outflow of medical tourism of diplomats, expatriates and many Ethiopians to Thailand, India, South Africa, Europe or the US presents a tremendous business opportunity. As the “capital city of Africa,” Addis Ababa is home to the AU, ECA, UNDP and more than 100 embassies and missions. For example, at Thailand’s Bangkok Hospital, Ethiopians make up the 6th largest hospital visits. Conservatively, the outflow of annual medical expenditure is over USD $120 Million. For developing the market from countries in the region, Ethiopian Airlines will be a key partner.
EADG MEMBERSHIP DEMOGRAPHICS
The members have funded the project’s core start-up and operating activities. The hospital will have permanent staff of specialized and accredited health professionals recruited from EADG’s membership, and others from Ethiopia and the international community.