[ACCI-CAVIE] According to consistent African Centre for Competitive Intelligence sources, Eurapharma, the healthcare division of CFAO, becomes a significant minority shareholder of the leading digital pharmacy and health services chain in East Africa. This acquisition will create synergies between Eurapharma’s drug and health products import and distribution operations and Goodlife’s network of pharmacies to give East Africans better access to quality medicines and health services.
A Fortune Impact 20 company, Goodlife was founded in 2014 and has grown into the largest private pharmacy network in East Africa, with nearly 100 pharmacies in Kenya and Uganda and access to 1.7 million patients.
The transaction marks the first sale of a healthcare asset by LeapFrog, an investor in Goodlife through the LeapFrog Emerging Consumer Fund III launched in 2017. LeapFrog, which will remain the majority shareholder of Goodlife, wanted to partner with a leading pharmaceutical distribution player in Africa with the experience and expertise to help Goodlife take the next steps in its development. In a separate transaction announced earlier this month, Goodlife also raised US$12 million in debt from Proparco, the French development finance agency.
A focus on innovation has enabled Goodlife to rapidly evolve and transform from a traditional pharmacy chain to a truly integrated, omnichannel health center. Its range of holistic services includes laboratory diagnostics and telemedicine services, through key partnerships, loyalty programs. During the pandemic, Goodlife also developed a digital e-commerce platform to offer new services to patients.
Building on this success, Goodlife has launched an ambitious expansion plan to reach 250 pharmacies by 2025, giving it access to 8.5 million patients, half of whom earn between $2 and $10 a day. With the launch of a new model and brand offering specifically designed for low-income populations, Goodlife intends to intensify its social impact.
This 30% equity investment will make CFAO Healthcare Goodlife’s second largest shareholder and will position it as a strategic partner -key to the execution of the expansion plan.
The combination of Goodlife’s pharmacy network and brand with CFAO Healthcare’s wholesale capabilities and product portfolio will create synergies that will benefit the company, the market and the general public. The goal is to make Goodlife an African champion in the retail pharmacy and healthcare sector.
“Goodlife has built a strong reputation in East Africa,” said Amaan Khalfan, CEO of Goodlife. “We hope to provide high-quality, affordable and accessible medicines to all people in West Africa and expand our business to provide more jobs, better healthcare and more sustainable supply chains. Eurapharma’s investment in Goodlife strengthens our ability to provide reliable healthcare products and a quality customer experience through our pharmacy network and digital platform – something that enabled uninterrupted access to essential healthcare products during the pandemic. Goodlife Pharmacy will continue to work in underserved areas, providing the same quality of care at prices appropriate for those markets. In addition, we will work with local Kenyan manufacturers to create additional demand for Kenyan-made pharmaceuticals.”
Jean-Marc Leccia, CEO of CFAO Healthcare, said, “Over the past decade, Eurapharma/CFAO Healthcare has been actively deploying its value chain integration strategy, first upstream with our entry into pharmaceutical manufacturing, and now downstream with this equity investment in Goodlife. This is the first step towards making CFAO Healthcare a major player in retail pharmacy in Africa. By becoming an operator integrating pharmaceutical production, wholesaling and retail pharmacy, we will be able to better serve our partners and, above all, African patients. Always with the same objective of contributing to the improvement of health conditions across the continent.”