On 3rd of February, 2021, the UK-based development finance institution and impact investor (CDC group) has announced a new equity investment of $100 million in the Egyptian private healthcare sector in one of the largest diagnostics and medical care providers in the Egyptian market (Alfa Medical Group / AMG).
About Alfa Medical Group
Alfa medical group has 3 main types of services including radiology, laboratory, and healthcare facilities. AMG owns 140 clinical laboratories, six radiology centers, and 180 beds hospital and Alfa medical city which is under construction in Sheikh Zayed City.
About CDC Group
CDC group is investing in Africa market for more than 70 years to provide a sustainable and long-term growth of its business investments with $266 million portfolio in Egyptian market including the biopharmaceutical and banking sectors.
Objectives of the investment
This investment will improve the overall healthcare services outcome at AMG and increase the access to care in the Egyptian society through the Alfa medical city, increase the number of hospital beds and the expansion of laboratory business and radiology centers specially in the underserved areas in Egypt. On the other hand, a part of this investment is directed to the establishment of Alfa training academy for all AMG employees to graduate qualified healthcare professionals and develop high-quality talents to improve patient care. This comes in alignment with the Egyptian vision 2030 that looks forward to the provision of quality healthcare services to Egyptian citizens.
What stakeholders said
Dr Adel Talaat, Chairman and CEO of Alfa Medical Group: “We are honored to welcome CDC, one of the largest development finance institutions, as shareholders in Alfa Medical Group. The investment marks an important milestone for our group and will allow us to expand our business and accelerate our growth. It also shows the confidence that foreign investors have in the Egyptian economy and health care sector.
Sherine Shohdy, Coverage Director, CDC, Egypt, commented: “Alfa Medical Group has played a key role over 25 years in improving the life of millions of Egyptians by granting access to quality healthcare. Its brands are recognised in the medical sector for providing high calibre diagnostics and care using cutting edge technologies. This investment is testament to CDC’s commitment to partner with leading Egyptian businesses, providing much needed patient capital that only our model can offer. With over 20 years’ experience investing here in Egypt, we remain ambitious about partnering with more local companies this year.”
Leandro Cuccioli, Head of Health and Consumer Businesses, CDC, commented: “CDC is excited to partner with Dr Adel Talaat and his team to continue the expansion of the Group in the country and broadening access to healthcare. We are particularly excited to co-found Alfa Academy, set up to train and upskill more local employees and support the broader healthcare sector. This investment is a key part of CDC’s strategy in Egypt and we look forward to supporting more businesses in the healthcare, education and other consumer driven sectors.”
Sir Geoffrey Adams, British Ambassador to Egypt, commented “CDC’s investment of $100 million in Alfa Medical Group, CDC’s largest ever equity investment in Egypt, is a fantastic illustration of the strength of the UK-Egypt trade and investment partnership. The deal will support healthcare in Egypt at a time of unprecedented challenges, improving access to medical care across Egypt for those in need. Congratulations to CDC and AMG on this major milestone.”
This investment is the first to happen in 2021 in the Egyptian healthcare market, with a rising trend in investing in the private healthcare market in Egypt which represents the major player in the provision of high-quality services and continues to attract more investors in Egypt in this sector.
Other investments in the Egyptian private healthcare sector yet to come during the upcoming period and it will be covered within HBC.