UAE-based investment firm Abraaj Group has announced an investment in Moroccan pharmaceutical manufacturer Steripharma.
The financial details of the investment were not disclosed.
Steripharma manufactures pharmaceuticals that are Good Manufacturing Practice (GMP) compliant and handles services including marketing and sub-contracting.
The company also provides a consolidated distribution service through private sector wholesalers and the regulated pharmaceutical distribution network in Morocco. It also distributes to the Moroccan public health sector through the Ministry of Health, and to nearby export markets.
Abraaj’s new investment will enable Steripharma to increase its footprint in the industry and help boost the firm’s exports to private sector companies operating in North and sub-Saharan Africa, a statement revealed.
The funds from the latest investment will also allow Steripharma to develop a new GMP plant in order to increase its production capacity.
“Pharma is amongst the best performing sectors in Africa; the industry has been growing at a steady rate over the past few years and this momentum is expected to continue in tandem with overall economic growth being witnessed in Africa,” said Ahmed Badreldin, partner and head of MENA at Abraaj Group.
“In Morocco, where local consumption is still low compared to other markets in North Africa, there is strong demand versus low penetration of generics, which creates the opportunity to develop high-quality, GMP- level products at an affordable price.”
Shakir Merali, managing director at Abraaj said that the unavailability of quality healthcare goods and services at an accessible price is a major concern in Africa.
“This deficit presents an opportunity to invest in solid companies to build scale, increase affordability and achieve world class quality,” said Merali.
“By doing so, a wide community of consumers touched by these products or services benefit, while robust commercial returns ensure that these businesses remain sustainable and attractive as investment opportunities in the long-term.”
The Abraaj Group has been steeping up investments in healthcare, with the fund investing $17.5 million along with UK-based finance body CDC, in India’s Rainbow Hospitals earlier this year.