Thursday, 5 October 2017

Healthcare Fund Announces Anchor Investors

Rebecca Ejifoma

Rx Healthcare Fund, an Africa-focused healthcare private equity fund currently under establishment, has announced that GE Healthcare (a leading global provider of transformational medical technologies and services) is set to become an anchor limited partner in Rx.

This is following an earlier commitment to Rx by the African Development Bank, the proposed minority investment by GE is subject to completion of fundraising.

Rx, which is led by former Egyptian Minister of Health Dr. Hatem El Gabaly, is a private equity fund managed by a newly setup fund manager in partnership with EFG Hermes, the leading financial services corporation in the Middle East and North Africa.

Indeed, the Fund aims to address growing demand for high-quality healthcare services across North African and Sub-Saharan jurisdictions, through investments in high growth potential entities in three key sectors: specialized hospitals, medical diagnostics, and pharmaceuticals.

“Access to long term development funding is the cornerstone of sustainable healthcare development in Africa”,  President & CEO of GE Healthcare Africa, Farid Fezoua.


He continued that as Africa’s banks and financial services industry sharpen their focus on the continent’s expanding health sector, nurturing homegrown strategic funding and financing solutions combined with operators’ and technology domain expertise has the potential to provide a significant boost for local private sector healthcare providers, SMEs and entrepreneurs as well as public-private partnerships.”

According to Dr. El Gabaly, they are delighted to have completed their lineup of potential anchor limited partners with GE Healthcare, an unrivaled industry specialist with a footprint in more than 100 countries across the world, and African Development Bank, the continent’s leading development finance institution.

“Importantly, GE Healthcare's added value to Rx goes far beyond its financial investment: We view GE Healthcare and AfDB as strategic partners who would bring deep industry and geography specific knowledge in many of our target markets. We believe our Fund will offer a unique value proposition to the potential investors, in which it will be supported by veteran healthcare professionals, seasoned private equity professionals, and experienced investors,” he said.


He described Africa’s healthcare sector as unique in that it offers both the potential for superior risk-adjusted returns as well as the opportunity to invest responsibly in a critical sector that will have measurable impact on the wider economy.

With the IMF projecting the continent’s GDP growing at 6% (2013-2017) and a population of over one billion that includes an emerging middle class that has grown 60%+ to reach c.313 million over the last 10 years, Gabaly says Africa has a strong macro-economic outlook that could create a significant role for private healthcare providers.

Within Africa, Rx will focus its strategy to invest in opportunities across Kenya, Nigeria and Ethiopia in sub-Saharan Africa as well as in Egypt, Tunisia and Morocco in North Africa.