Nairobi, January 30, 2017 - IFC, a member
of the World Bank Group, announced an investment of
$3 million in Goodlife Pharmacy Limited, to help the company expand to
more than 100 stores within four years to create a Pan-East African retail
pharmacy chain. Goodlife supplies affordable, quality healthcare products
in Kenya and Uganda, where there are few nationwide chains, and an estimated
35 to 40 percent of medications sold are counterfeit.
The financing marks IFC’s second investment
in Goodlife. A 2015 IFC loan of $4.5 million, made in conjunction
with a third-party equity investment, accelerated the company’s growth.
It grew from a small enterprise with four stores, to become the region’s
largest pharmaceutical retail chain. Goodlife has since created more than
200 jobs and will ultimately reach nearly four million consumers.
Oumar Seydi, IFC Director for Sub Saharan
Africa, said “IFC’s investments in Goodlife supports a trusted pharmacy
brand that is committed to delivering high-quality service and products.
Goodlife’s expansion is an important step towards consolidating Kenya’s
retail pharmaceutical industry, and ensuring that consumers have access
to high-quality, reliable products.”
In November 2016, Goodlife Pharmacy was acquired
by LeapFrog Investments. LeapFrog has empahasized expansion, setting a
new national standard for customer convenience and quality, and introducing
customer-centric technology and software systems new to the East African
pharmaceutical market. As Goodlife expands, most new stores will aim to
serve customers earning less than $10 a day in underserved and lower-income
areas. These areas are typically served by informal, and at times unregulated,
“IFC’s investment in Goodlife will help
strengthen our leadership position in the Kenyan retail pharmaceutical
market, allow us to create more skilled job opportunities, and bring quality
drugs and medicines to multiple countries in East Africa,” said Amaan
Khalfan, CEO of Goodlife.
The East African retail pharmacy sector is
highly fragmented, with more than 12,000 independent retailers and medicine
sellers in Kenya alone. Ineffective regulation, sub-standard or counterfeit
drugs, and a lack of information available to the buyer leave room in the
market for affordable, reliable pharmaceuticals like the Goodlife model.
Dr. Felix Olale, Partner and Global Head of
Healthcare for LeapFrog Investments, said, “IFC’s second investment into
Goodlife underscores the company’s reputation and leadership in improving
health and wellness in the region The additional financing puts Goodlife
in a prime position to continue its rapid growth across East Africa and
on course to become the largest Pan-East African pharmacy chain over the
next several years.”
IFC is the world’s largest multilateral investor
in the private health and education sectors in emerging markets..
Investments of $25-30 billion will be needed
to meet the demand, with the private sector playing a key role. IFC is
working with local businesses, financial intermediaries, policymakers,
donors and other stakeholders to help Africa meet these challenges.
LeapFrog invests in extraordinary businesses
in Africa and Asia. We partner with their leaders to achieve leaps of growth,
profitability and impact. LeapFrog companies now operate across 33 markets
and reach 117 million people. Over 97.5 million people are emerging consumers,
often accessing insurance, savings, pensions, credit and healthcare for
the first time. We call this distinctive approach “profit with purpose”,
because it generates strong results and changes many lives. Leading global
investors share this vision and have invested and committed a billion dollars
to LeapFrog. LeapFrog is the winner of Private
Equity International (PEI) Firm of the Year Africa,
and is ranked by Fortune as one of the top
five companies changing the world.
IFC—a sister organization of the World
Bank and member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
with more than 2,000 businesses worldwide, using our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,