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Egypt’s healthcare system needs EGP 17-20bn for coming 20 years - Daily News Egypt

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Egypt’s healthcare system needs EGP 17-20bn for coming 20 years

Egypt needs to look at public–private partnership (PPP) to decrease the gap in the sectors in need, like the healthcare system in Egypt, which needs EGP 17-20 bn to cover the gap for the coming 20 years, according to Mansoor Ahmed, director Healthcare, Education PPP, MENA Region, Colliers International. Ahmed said that foreign investment also …


Egypt needs to look at public–private partnership (PPP) to decrease the gap in the sectors in need, like the healthcare system in Egypt, which needs EGP 17-20 bn to cover the gap for the coming 20 years, according to Mansoor Ahmed, director Healthcare, Education PPP, MENA Region, Colliers International.

Ahmed said that foreign investment also provides best practice and experience, transfer of knowledge, and technological advancements.

Additionally, he noted that there is a gap between the expected asset valuation, and the market needs. Owners are looking to get the most profit from tenants, however they sometimes fail to put into consideration the other factors besides rent amount; the credibility and position of the tenant.

On Euromoney Egypt Conference held Wednesday, Ahmed pointed out that education and healthcare sectors are long term investments, with the tenants looking at a minimum of 10 years for concessions.

“There a gap between the expected asset valuation, and the market needs. The Egyptian government has a lot of valuable assets that need to be put to good use. The revenue from PPP on these assets can generate a considerable amount to be used in the development process for infrastructure and other projects,” he noted.

He elaborated that the private sector is willing to invest, but the government needs to put the land out for 20-30 years concession to encourage investors.

“The structure in KSA for example is building educational and healthcare cities for operators to come and take over. Another scheme is the long term land concession, like in Dubai, where the government gives up the land for a long period of time to the private sector to build and operate. This segregation proved to be very successful,” he stated as an example.

In the healthcare and education sectors for example, by 2050, 85 million new-borns would be added to the total population in Egypt, which means that the demand will be very high for health and education. Currently, there are 3 million of the population happens to be over 70 years old, and they will reach 12 million by 2030, hence healthcare development is required. There are also 31 million under 15 years old, and they will need higher education.

Topics: healthcare
https://ww.dailynewssegypt.com/2018/09/06/egypts-healthcare-system-needs-egp-17-20bn-for-coming-20-years/
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