The Sovereign Fund of Egypt (TSFE) has signed, through its sub-fund for health services and pharmaceutical industries, two partnership agreements with B Investments, managed through BPE Partners, to invest over EGP 2bn in the healthcare services and pharmaceutical trade in Egypt.
The first agreement provides that TSFE shall invest EGP 100m in healthcare projects.
B Investments established a subsidiary to invest in healthcare, which aims in the first stage to invest in the field of fertility, reproductive health, maternal, and child health. The company owns 51% of the Egyptian IVF-ET Center.
B Healthcare Investment aims to invest EGP 1bn, and B Investments and TSFE have committed to investing EGP 200m and EGP 100m, respectively, with the rest of the shares offered to local and regional private sector investors.
Through the second agreement, B Investments will invest in the platform established by TSFE for health services and pharmaceutical industries. The platform aims to enhance employees and inject the required capital to support developing the infrastructure to institutionalize the sector.
The platform aims to utilize the latest technological solutions to provide a wide range of digital offerings that will improve operating efficiency, ensure market stability and improve customer experience. Investments of about EGP 1.2bn will be pumped in the first phase, with aspirations to grow further with the emergence of more investment opportunities.
Hala El-Said, Minister of Planning and Economic Development and Chairperson of TSFE, said that the fund places the development of the healthcare sector among its top priorities as a prerequisite for achieving sustainable and comprehensive economic growth, in line with the goals of Egypt’s Vision 2030, as well as the goals of sustainable development.
She added that both agreements contribute to providing Egyptian citizens with better services in the healthcare sector, and they also constitute a step forward towards institutionalizing the sector. In addition, the two agreements serve the investment model of the Fund, as a mechanism to enhance partnership with investors from the private sector.
Khaled Abdel Ghaffar, Minister of Health and Population, stated that the political leadership pays great attention to supporting participatory and development efforts between the public and private sectors. He stressed that the Egyptian state is taking a clear and serious step towards achieving the goals of sustainable development and achieving Egypt’s Vision 2030, which includes enhancing the quality of healthcare services.
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