EGYPT – CDC Group, the UK’s development finance institution and impact investor, has announced a US$100 million minority equity investment in Alfa Medical Group (AMG), is one of the largest healthcare providers in Egypt.
CDC invested alongside healthcare investor Africa Platform Capital, the family office of Simon Rowlands, a leading sector expert with a strong track record in healthcare and former co-founder of the global private equity firm, Cinven, where he led the healthcare team.
This investment will help in increasing the number of hospital beds providing quality healthcare service, complementing the Egyptian Government’s efforts in achieving its vision for Egypt 2030.
“We are honoured 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,” Dr Adel Talaat, Chairman and CEO of Alfa Medical Group.
“Alfa Medical Group is a manifestation of the Talaat family’s 100-year legacy in the medical field in Egypt which began with my grandfather, the late Prof. Mohammed Talaat in the 1920s. In our next phase of growth, together with CDC, we endeavour to raise the benchmark of the Egyptian healthcare offering, supporting the Presidential vision of 2030 to provide every Egyptian with access to quality healthcare services.”
In addition, the transaction will finance the establishment of the Alfa Academy, a training academy for AMG employees and third-party healthcare staff. The Academy will provide training to healthcare professionals, developing permanent high-quality talents across the sector and improving patient care.
“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,” Sherine Shohdy, Coverage Director, CDC, Egypt, said.
“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.”
This investment will contribute towards SDG 3: Ensure healthy lives and well-being for all, creating jobs as per SDG 8.5: Achieving full and productive employment and offer improved skills training as per SDG 4.4: Increasing the number of people who have relevant skills.
“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,” Leandro Cuccioli, Head of Health and Consumer Businesses, CDC, said.
“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.”
CDC has been investing in Africa for over 70 years. Its investment will enable AMG to improve its medical health services outcomes, increase public access to medical care and broaden its hospital footprint which will include the new Alfa Medical City.
The investment will also support the expansion of the AMG laboratory business particularly into underserved regions across Egypt, as well as the growth of Alfa Scan radiology centers.
“CDC’s investment of US$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,” Sir Geoffrey Adams, British Ambassador to Egypt, said.
“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.”
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE
