Africa focused Private Equity firm, 54 Capital Ltd, has invested USD42 million into Addis Pharmaceutical Factory (APF), an Ethiopian pharmaceutical manufacturer.
An initial investment of USD30 million, with the option to invest a further USD12 million, will be used to increase national and international reach through improved production capacity and product portfolio, and to obtain WHO certification.
The pharmaceutical sector in Ethiopia, while currently dominated by imports, is seen by the Ethiopian Government as a major sector for development, and is expected to grow at circa 15 per cent per annum over the next three years to reach a total value of USD1 billion by 2018 at the latest. In 2015 the Ethiopian economy was the fastest growing in the world.
With headquarters in Adigrat, Northern Ethiopia, APF manufactures a significant number of high quality products across different therapeutic categories that it supplies primarily to the Ethiopian market. APF intends to use the investment proceeds to enhance all aspects of its business; working in collaboration with a team of international experts to boost its production capabilities, implement best pharmaceutical manufacturing practises, and set the standards for high quality pharmaceutical manufacturing in the region.
Saad Aouad, Founder & CIO of 54 Capital, says: “The Ethiopia pharmaceutical sector is one of the most exciting industries in the country and is poised to witness a high level of demand in the coming years. Through our investment into APF we will be both partnering with EFFORT, an investment group dedicated to transforming the Ethiopian business landscape, and investing into one of the leading companies in the country; marking our recognition of the importance of the sector in Ethiopia and our continued commitment to the country.”
Shimelis Mamuye, General Manager of APF, says: “As the Ethiopian market leader within the pharmaceutical sector we are proud to be partnering with international experts to move to our next stage of growth and development in line with the country’s growth ambitions. We believe that we have a fundamental role to play in the development of the pharmaceutical sector in Ethiopia and we are committed to achieve the best results possible.”
