The Sovereign Fund of Egypt (TSFE) and B Investments, signed two agreements to invest over EGP 2 billion in specialized healthcare and pharmaceuticals distribution and trade services in Egypt.

“This partnership marks TSFE’s first investment into the healthcare and pharmaceutical services industries. We are glad to partner with BPE Partners who possess the required investment management expertise to realize our shared vision of providing affordable, high-quality healthcare services across all regions in Egypt. Together, we will capitalize on the sector’s potential for growth with a larger geographical reach and technology enablement. TSFE’s trade pharma platform is an integral pillar in the subfund’s strategy. Egypt’s pharmaceutical industry is currently worth over EGP 130 billion and our aim is to provide investment solutions to enhance governance, achieve cost efficiencies, and ensure market stability to unlock the sector’s full potential” Ayman Soliman, CEO of The Sovereign Fund of Egypt, said.

In the first agreement, TSFE will commit to investing EGP 100 million in B Healthcare Investments (BHI). BHI was established by B Investments as its designated investment vehicle to support the Egyptian specialized healthcare sector with an initial focus on fertility, mother-and-child, and related services businesses.

BHI currently owns 51% of the Egyptian IVF Center, and it is targeting to raise up to EGP 1 billion of which B Investments and TSFE have committed to invest EGP 200 and EGP 100 million, respectively, with the rest to be offered to local and regional private sector investors.

Through the second agreement, B Investments will invest in TSFE Healthcare & Pharma Subfund’s established investment platform dedicated to investing in pharmaceutical distribution and trade services.

The platform aims at enhancing efficiencies and injecting capital to support infrastructure upgrades required to institutionalize the sector. The platform will partner with local market champions to accelerate their growth into under-served cities in Egypt and across the region.

It will also aim at leveraging the latest technological solutions to provide a wide range of digital offerings that will lead to cost efficiencies, ensure market stability, and improve customer experience. EGP 1.2 billion will be deployed in the first phase with aspirations to grow even further as more investment opportunities arise.

Both transactions are subject to customary regulatory approvals and are expected to close during the first half of 2023.