The Fund will pursue a focused investment strategy predicated on investing in established North Africa-based healthcare companies with demonstrated track record, solid growth prospects, and strong commitment to environmental, social and governance (ESG) best practices, with the aim of growing businesses within their local markets and regionalizing successful North African models to the broader African continent. Through investment, the Fund aspires to develop Sub-Saharan Africa’s under-served and fast-growing healthcare sector, with the aim of building solid integrated platforms across the healthcare value chain. The Fund expects to add significant value to its investee companies via strategic and operational support extended by its seasoned management team. The Fund aims to achieve significant cross-border synergies, operational optimization, and implementation of ESG best practices and policies across its portfolio of investments.

The Fund’s investment approach is predicated on providing growth capital by investing in controlling stakes (and on selective basis, in controlled minority stakes) in companies operating in the segments of (i) hospitals (general & specialized), (ii) laboratory and diagnostic centres/imaging specialized labs, (iii) pharmaceuticals manufacturing and other complimentary healthcare sub-segments.

The Fund targets investments that demonstrate the following core qualities in line with its investment criteria:

  • Projects that provide essential healthcare services and realize developmental impact for the inhabitants of its target operational region
  • Proven track record and high integrity of local partners
  • Strong and dedicated management teams that are well aligned to grow their businesses
  • Scalable businesses
  • Clear actionable value creation plan
  • Established and/or strong prospects for positive cash flow

The Landscape

Historically Africa has had to bear more than 25% of the global infectious disease burden:

  • HIV/AIDS, tuberculosis and malaria combined cause 2.5+ million deaths a year, or c.25% of the global total
  • Non-communicable diseases, primarily cardiovascular disease and diabetes, are also on the rise
  • Life expectancy in Africa is 58 years, 13 less than the world average of 71 years

The continent’s underdeveloped healthcare infrastructure suffers from a shortage of healthcare facilities and qualified healthcare providers:

  • North African countries have the largest trained workforces, with Egypt’s physician’s availability at 28 doctors per 10,000 people surpassing the global average of 14 per 10,000.
  • But North African healthcare infrastructures are inadequate, suffering from budget constraints caused by dwindling government expenditures on healthcare; inefficient management systems; and lack of private funding
  • Sub-Saharan infrastructures are weak and dysfunctional with 3 physicians per 10,000 people vs. 14 globally; and 3 hospital beds per 10,000 people vs. 27 worldwide

However, a more promising macro picture could spur growth in the African healthcare sector, creating a significant role for private healthcare providers to play in these large and growing economies:

  • The IMF projects Africa’s GDP growing at 6% (2013-2017)
  • The continent’s population of over one billion includes an emerging middle class that for the past 10 years has been increasing at 60%+ to reach c.313 million
  • 27 African countries have already attained “middle class” status.