Nairobi, Kenya, 30 January 2013: The Abraaj Group, a leading private equity investor operating in global growth markets, today announced an investment by its Africa Health Fund in Vine Pharmaceuticals, the largest pharmacy retail chain in Uganda.
The investment is the Africa Health Fund’s first in the pharmaceutical retail and distribution sector. It will help Vine to expand its reach and market share in Uganda’s rapidly growing pharmaceutical market, where expenditure is growing at a CAGR of 13% and forecast to increase from the US$ 268 million spent in 2011 to US$ 545 million by 2014.
The Africa Health Fund was established in June 2009 with the International Finance Corporation, The African Development Bank, DEG, and the Bill & Melinda Gates Foundation as cornerstone investors. The Fund’s unique objective is to improve the access of low-income Africans to affordable, high quality health services while providing investors with strong long-term financial returns. The Africa Health Fund’s strategy is to tackle the issues of fragmentation in private healthcare provision and to drive economies of scale in supporting sectors such as pharmaceuticals, medical devices and diagnostic services.
Vine Pharmaceuticals was founded in 1999 and has grown to be the largest Ugandan pharmacy retailer, with 21 stores, 98 employees and a pharmaceutical import business. Abraaj will support Vine in extending its branch network outside Kampala, and building the capacity of its wholesale distribution business serving clinics, hospitals and other pharmacies.
Shakir Merali, Partner, The Abraaj Group, commented: “Vine will be an important beneficiary of the continued growth in pharmaceutical expenditure in Uganda through both its retail and wholesale businesses.”
“There will also be significant benefits for low-income Ugandans, with more consumers being put within easy reach of the basic health advice that a pharmacy can provide, and improvements to the availability of a comprehensive, up-to-date and affordable supply of drugs and other health products across the country.”
Grace Munyirwa, Founder and Director of Vine Pharmaceuticals, said: “I am proud of the work our team has done to take Vine to its leading position in the Ugandan market, and I am looking forward to taking the business to the next level with Abraaj’s support. Their expertise in the health sector and their track record of helping to grow businesses by investing in operational improvements and more sophisticated business management systems will make them the perfect partners as we expand our presence across the country and develop our promising wholesale business.”
The Abraaj Group is one of the leading private equity investors in the healthcare sector in growth markets around the world. Its Funds’ investments include stakes in the Philippines retail pharmacy chain HBC, and in Saudi Arabia’s Tadawi Group, both leaders in their local markets. Additionally, the Group has current investments in nine hospitals (following two recent successful healthcare exits in Asia), as well as in pharmaceuticals, diagnostics, and medical devices manufacturing.
The Abraaj Group, a leading investor operating in global growth markets, announced today the curator, winning and shortlisted artists selected for the eighth prestigious Abraaj Group Art Prize – the most significant arts prize in the Middle East, North Africa and South Asia, recognised globally for its generous and innovative support of artists. more >
The Abraaj Group, a leading investor operating in global growth markets, and the Aditya Birla Group, a US$ 41 billion multinational conglomerate, today announced a partnership to build a gigawatt scale renewable energy platform focused on developing solar power plants in India. Abraaj will invest in the platform through one of its Funds and the Aditya Birla Group will invest through Aditya Birla Nuvo Limited (BSE: 500303). more >
The Abraaj Group, a leading investor operating in global growth markets, today announced that it has closed on the issuance of MX$ 3.2 billion, equivalent to US$ 191 million, of Mexican publicly traded certificates, known as Certificados de Capital de Desarrollo or Certificates of Development Capital (‘CKD’). The CKD, which will be managed by Abraaj, has a specific mandate to invest in Mexico. more >
The Abraaj Group, a leading investor operating in global growth markets, today announced a partnership, through its second generation North Africa Fund, with Tiba Group, a leading education service provider in Egypt. Tiba operates across three verticals and through seven educational institutions in Egypt, serving approximately 20,000 students. more >
The Abraaj Group, a leading investor operating in global growth markets, today announced the signing of an agreement to exit its stake in Condor Travel S.A. (‘Condor Travel’ or the ‘Company’) to The Carlyle Group. The exit, through Abraaj’s Latin American Fund, ALAF I, marks the first secondary private equity sale in Peru, and Abraaj’s fourth exit from ALAF I in the last 12 months. The transaction is expected to close by the end of September. more >