Private equity groups are increasingly eyeing opportunities in North Africa’s healthcare market, attracted by expanding populations spending more out of their own pockets on private medical services in countries where state provision is inadequate or underfunded, says the UK business newspaper Financial Times (FT).
UAE-based Abraaj, which has $9 billion of assets under management, according to the newspaper, has teamed up this year with three development institutions to establish a $200 million healthcare investment platform, the North Africa Hospital Holdings Group, focused on Egypt and Tunisia.
Abraaj, which already has stakes in hospitals in the two countries, is the biggest contributor to the fund with $145 million. The group’s three partners in the fund are the European Bank for Reconstruction and Development, Germany’s DEG and France’s Proparco.
Across North Africa, government-provided healthcare is falling behind demand, according to research cited by Abraaj. Out-of-pocket expenses by the region’s citizens on medical services averaged 41% of healthcare spending. In Egypt, it is 63%, a regional bank’s report said.