British International Investment

CDC North Africa Healthcare Limited

North AfricaConsumer - Health

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

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the 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 information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

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).

How?

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.

Who?

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.

How much?

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.

Contribution/additionality

Contribution/additionality
  • Financial additionality: The commercial market does not offer capital in sufficient quantities to meet the company s plans / needs.
  • Value additionality: We can bring knowledge of the sector as well as support for governance

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

3

Risk

Execution Risk
  • The impact case relies on the businesses' ability to scale up across different geographies and healthcare services.
Alignment Risk
  • Ensuring Alignment to have the intended catalytic effect and greatest reach.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D3956
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    North Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    Egypt
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Consumer - Health

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Equity
    Start date :
    December 2020
    Amount :
    $101.06m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    United Kingdom

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