Healthcare businesses and startups in Egypt in parts of the Middle East and North would soon have a new fund to tap from. The Sovereign Fund of Egypt (TSFE) and the New York-based investment manager Concord International Investments are planning a joint venture to raise and manage a healthcare fund that will invest mainly in Egypt, but also in the Middle East and Africa.

“Investing in healthcare is a priority for the Egyptian government at this critical time when the world is facing the new Covid-19 pandemic crisis and the quality of the population’s healthcare is an integral part of the Egypt 2030 Vision for Sustainable Development,” Hala El Said, Egypt’s Minister of Planning and Economic Development and TSFE’s chairperson, said. “This diversified healthcare fund reflects the implementation of TSFE’s mandate to fast track attracting investments to public assets in a value accretive manner, while increasing private sector participation in the Egyptian economy.”

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Here is What You Need To Know

• The fund’s initial target size is $300 million (Dh1.1 billion) with the aim of achieving long-term capital appreciation through direct investment opportunities in Egypt, according to a statement.
• The fund will seek to attract “sizeable” foreign direct investments and will identify co-investment opportunities in significantly large projects.
• The fund is expected to benefit the growing population in Egypt, the Arab world’s most populous country with about 100 million people in need of healthcare services.

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The Target Of The Fund

• Through the new partnership, Egypt ‘s Sovereign fund intends to target the creation of export-oriented healthcare entities covering various specialties.  The fund would be managed by Concord International Investments.
• It also seeks to unlock value in high-growth companies, under-utilised assets and untapped specialties to be able to capitalise on Egypt’s geographical location and relatively lower services and production costs to serve Europe, the Middle East and Africa, the statement said.

“Both the healthcare and the pharmaceutical sectors have been on the top of the [TSFE’s] priority list, and today’s MOU signing culminates our collective efforts in securing FDI in those fields,” said Ayman Soliman, TSFE’s chief executive.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.