CDC North Africa Healthcare Limited

North Africa,Africa Health

Alfa Medical Group is one of the largest healthcare providers in Egypt delivering quality healthcare across pathology, radiology and hospital services.

Our investment

CDC’s investment in Alfa Group will help expand high-quality healthcare provision in Egypt across diagnostics and tertiary care, especially outside Cairo. Impact principles have been incorporated into the agreement in order to further maximise the impact this investment can deliver for the broader healthcare ecosystem in Egypt.

Impact
  • Support health outcomes including combating communicable diseases such as hepatitis (3.3), reducing mortality from non-communicable diseases (3.4) and working towards achieving universal health coverage (3.8).
  • Support economic opportunity through high-quality healthcare jobs (8.5) and improved skills training (4.4).
Primary Secondary
  • CDC’s investment will add c. 120 labs and five new scan clinics increasing access to safe, high-quality diagnostics.
  • CDC’s investment will add 900 hospital beds.
  • CDC’s investment will support business growth to create new jobs and build training academy for employees.

By demonstrating the viability of a lower cost model, we may stimulate other Egyptian healthcare players to follow and reduce overall costs of Egyptian private healthcare.

Stakeholder Geography Characteristics
Patients

Egypt

Alfa Lab’s expansion will include a significant proportion of new branches in underserved regions outside Cairo (Upper Egypt, Delta, Canal and Alexandria). Universal health coverage roll-out could further improve affordability.

Employees

Egypt

Significant numbers of recent graduates especially nurses. Approximately 40 per cent of the workforce female.

Scale Depth/Duration
  • Patients: Increase access to diagnostics for an additional 2.3 million patients annually.
  • Patients: Increase access for up to 100,000 additional inpatients once new hospitals are operational and c. 150,000 outpatients annually.
  • Employees: Add at least 5,000 new jobs from business expansion.
  • Patients: Shifting the market towards high-quality, safe diagnostics. Improved diagnostics is a high-impact area, helping to save lives and improve quality of life.
  • Patients: Often deep impact through service for high acuity cases, frequently life-saving given the hospitals’ focus on ICU.
  • Employees: Jobs expected to be permanent, high-quality, with all employees having access to Alfa Academy.
Grid Score Contribution

3

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

  • Financial: The commercial market does not offer capital in sufficient quantities to meet the company's plans / needs.
  • Value-add: CDC capital can bring knowledge of the sector as well as support for governance.
Risk
  • Execution: The impact case relies on the businesses ability to scale up across different geographies and healthcare services.
  • Alignment: Ensuring alignment to have the intended catalytic effect and greatest reach.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, North Africa
Countries:
Egypt
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Health
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2020
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$98m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
United Kingdom