Sovereign Fund of Egypt and Concord International to set up healthcare fund

The new fund will have an initial target size of $300 million

A doctor checks a patient at the Imbaba Fevers Hospital in Cairo, Egypt, on April 28 2020. Countries around the world are taking increased measures to stem the spread of the deadly coronavirus. EPA

The Sovereign Fund of Egypt (TSFE) and the New York-based investment manager Concord International Investments are planning a joint venture to raise and manage a healthcare fund that will invest mainly in Egypt, but also in the Middle East and Africa.

The fund's initial target size is $300 million (Dh1.1 billion) with the aim of achieving long-term capital appreciation through direct investment opportunities in Egypt, according to a statement on Wednesday. The fund will seek to attract "sizeable" foreign direct investments and will identify co-investment opportunities in significantly large projects.

"Investing in healthcare is a priority for the Egyptian government at this critical time when the world is facing the new Covid-19 pandemic crisis and the quality of the population’s healthcare is an integral part of the Egypt 2030 Vision for Sustainable Development," Hala El Said, Egypt's Minister of Planning and Economic Development and TSFE’s chairperson, said. "This diversified healthcare fund reflects the implementation of TSFE’s mandate to fast track attracting investments to public assets in a value accretive manner, while increasing private sector participation in the Egyptian economy."

The fund is expected to benefit the growing population in Egypt, the Arab world's most populous country with about 100 million people in need of healthcare services.

The fund targets the creation of export-oriented healthcare entities covering various specialties. It also seeks to unlock value in high-growth companies, under-utilised assets and untapped specialties to be able to capitalise on Egypt’s geographical location and relatively lower services and production costs to serve Europe, the Middle East and Africa, the statement said.

"Both the healthcare and the pharmaceutical sectors have been on the top of the [TSFE's] priority list, and today’s MOU signing culminates our collective efforts in securing FDI in those fields," said Ayman Soliman, TSFE’s chief executive.