UK-based CDC buys minority stake in Egypt’s Alfa Medical for $100 mn

CDC Group, the UK’s development finance institution and impact investor, injected a $100 million to acquire minority equity investment in Alfa Medical Group (AMG), one of the healthcare providers in the Egyptian market, alongside healthcare investor Africa Platform Capital.

The new investment aims at improving medical health services and increasing public access to medical care, according to CDC.

The investment — which has been in the works since early last year — will go towards funding the establishment of the new Alfa Medical City, supporting the expansion of AMG’s laboratories and radiology centers into underserved regions, and establishing a training academy for AMG employees and other healthcare professionals.

AMG owns and operates brands including Alfa Scan and Alfa Labs (with about 140 branches in total), and the 170-bed El Safa Hospital.

Sir Geoffrey Adams, British Ambassador to Egypt, said that the move, which is CDC’s largest ever equity investment in Egypt, is a fantastic illustration of the strength of the UK-Egypt trade and investment partnership.

“The deal will support healthcare in Egypt at a time of unprecedented challenges, improving access to medical care across Egypt for those in need,” Adams said.

Following the Brexit deal, Egypt and the UK inked in December a bilateral agreement that came into effect on January.

The deal aims at allowing British businesses and consumers to benefit from continued preferential access to the Egyptian market after the end of the Brexit transition period.