Published: January 30, 2013
The Abraaj Group has invested in Uganda’s biggest pharmacy chain.
Africa Health Fund, an arm of private equity fund the Abraaj Group, has bought a stake in Uganda’s largest pharmacy retail chain, Vine Pharmaceuticals. It is the fund’s first move into the pharmaceutical retail and distribution sector.
Founded in 1999, Vine Pharmaceuticals now operates 21 retail outlets and a drugs importation business. Expenditure in the Ugandan pharmaceutical market is set to increase from US$268mn in 2011 to US$545mn in 2014, a compound annual growth rate of 13%.
The Africa Health Fund was set up to widen the availability of good healthcare services to low-income Africans. Its chief investors are the IFC, the African Development Bank, DEG and the Bill and Melinda Gates Foundation.