TSFE, B Investment ink deals to co-invest over EGP 2 billion in health sector

The two agreements were inked by the Sovereign Fund of Egypt (TSFE), through its Healthcare and Pharma Sub-fund, and the private equity firm, B Investments Holding (BIH), according to a statement released by TSFE on Tuesday 24/1/2023.

Under the first deal, B Healthcare Investments (BHI) – the investment arm of BIH specialized in the field of healthcare, maternal and child health – and TSFE’s sub-fund are committed to invest EGP 200 million and EGP 100 million, respectively, as the rest to be offered to local and regional private sector investors, the statement added.

BHI – which has recently completed the acquisition of 51 percent of the total shares of the Egyptian fertility treatment center – aims to invest in reproductive health, and maternal and child health.

As per the second agreement, BIH will invest in pharmaceutical distribution and trade services via an investment platform established by TSFE Healthcare & Pharma Sub-fund.

The platform aims to enhance efficiency and inject capital to support infrastructure upgrades required to institutionalize the sector. This will be carried out via partnerships with pioneering local firms to accelerate their growth into under-served cities in Egypt and across the region, according to the statement.

It also aims to leverage 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.

Both deals will contribute to providing Egyptians with improved services as well as representing a step forward towards institutionalizing the sector, the planning minister said.

They will also fulfill the TSFE’s investment model that aims to promote partnerships with private investors and develop key strategic sectors, while achieving sustainable financial returns for future generations, she added.

Egypt seeks to increase private sector investments in the economy in three years to 65 percent, up 30 percent at present, as per its newly launched State Ownership Policy Document. It also intends to attract $10 billion in investments over the coming four years.

Established in 2006, B Investments is an Egypt-based private equity firm and growth capital investor focusing on various spheres, including real estate development, renewable energy, IT systems and others.