International Finance Corporation (IFC), the investment arm of the World Bank has announced that it will invest Ksh 300 million in Kenya’s leading pharmacy brand Goodlife Pharmacy.
The funds will be used to open 100 drug stores across East Africa and hopefully reach about 4 million customers. If executed right, Goodlife Pharmacy will become the leading retail pharmacy chain in the East African region.
“IFC’s investment will help strengthen our leadership position in the Kenyan retail pharmaceutical market, allow us to create more skilled job opportunities, and bring quality drugs and medicines to multiple countries in East Arica,” said Amaan Khalfan, the newly appointed CEO of Goodlife Pharmacy.
The financing marks IFC’s second investment in Goodlife. A 2015 IFC loan of $4.5 million, made in conjunction with a third-party equity investment, accelerated the company’s growth to become Kenya’s largest retail pharmacy chain.
In November 2016, LeapFrog Investments acquired a majority stake in the company for Sh2.2 billion, the largest direct investment in the East African retail pharmacy sector to date. The pharmacy provides pharmaceutical, beauty care, healthcare, personal care, and OTC products. Customers can also receive services such as blood sugar and blood pressure testing.
Most of the new drug stores will be opened in low-income sectors where the population generally makes less than Sh1000 a day. These areas are characterised by unregulated pharmacies and Goodlife Pharmacy wants to change the status quo.
IFC is the world’s largest multilateral investor in the private health and education sectors in emerging markets.
