Hatem Al-Gabaly, former minister of health, said that he plans to establish a direct investment fund named RX Healthcare Fund in Mauritius with investments worth $100m in the first phase, which is planned to extend for four years.
Al-Gabaly told Daily News Egypt on the sidelines of the first investment conference for the health sector on Sunday that the fund’s investments will be allocated for contribution in the projects in the fields of hospitals, diagnostic centres, and pharmaceutical companies in the African market.
He explained that the Egyptian market will be amongst the markets in which the fund will invest, on the condition that there are good opportunities.
“A while ago, there were several good investment opportunities in the health sector,” said Al-Gabaly.
He pointed out that the fund may invest 30% of its volume in the Egyptian market if real opportunities with promising revenues are available.
He expected the fund to implement its first deal in an unspecified African country. However, he noted that it will be implemented “very soon.”
He said that the medical sector is very attractive for Arab and foreign investment and claimed that all global investment funds prioritise the sectors of education and health.
Al-Gabaly said that the African market needs investments in the health sector, noting that Egyptian investors can benefit from that and achieve good revenues as a result.
He added that the Egyptian market is characterised by high investment revenues and a speedy collection of fees for health services from citizens. The largest percentage of fees obtained from these health services are in cash. There are also a lack of services and no strong competitors, he added.
“Africa will be the destination of global investment in the field of health over the upcoming 20 years. Egypt can be a main player in the African market, especially that young investors working in Egypt are more bold and ready compared to before,” said Al-Gabaly.
He said that the period from 2011 to 2016 witnessed the establishment of 919 investment funds in Africa. They own investments worth $22.7bn. The health sector only accounted for 7% of these investments, which means that the market is still in great need of Egyptian investments.