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Strategic Expansion into East Africa’s Healthcare Market
CFAO Healthcare, the pharmaceutical arm of the Toyota Group, has taken a significant step in its expansion strategy by acquiring full ownership of Goodlife Pharmacy, Kenya’s largest private retail pharmacy chain. This move is aimed at strengthening its presence in East Africa’s growing retail health market.
The African retail pharmacy market is expected to witness substantial growth, increasing from approximately USD 70,053 million in 2024 to an estimated USD 86,600 million by 2032. Several factors are contributing to this upward trend, including the rising prevalence of chronic diseases, increased public awareness of health and wellness, and the expansion of the middle-class population across the continent.
Jean-Marc Leccia, CEO of CFAO Healthcare, emphasized the company’s vision during a press briefing in Nairobi. “We want to be vertically integrated from manufacturing to retail and we want to be in any country where we can bring access to high-quality products,” he stated. This acquisition aligns with CFAO Healthcare’s broader goal of becoming a global healthcare player.
Operating in 24 countries, CFAO Healthcare has a well-established value chain that begins with manufacturing in two sites in Morocco and Algeria, with a production capacity of 200 million units. The company also extends its operations to pre-wholesale and wholesale distribution.
“By acquiring 100% of Goodlife Pharmacy, we are accelerating our transformation into a global healthcare player. Together, we will enhance accessibility, service quality, and innovation in the pharmaceutical sector,” added Leccia.
Goodlife Pharmacy serves over two million customers annually through a range of services, including in-store services, diagnostics, telemedicine, e-commerce, and home delivery. The pharmacy currently operates nearly 150 branches in Kenya and Uganda, making it a key player in the region’s healthcare landscape.
Justin Melvin, CEO of Goodlife Kenya, expressed his enthusiasm about the partnership. “Goodlife Pharmacy has always been committed to promoting health and well-being. With the support of LeapFrog Investments, we have made remarkable progress in fulfilling our mission. The partnership with CFAO Healthcare represents a unique opportunity to expand this mission, bringing even greater impact and value to our customers and communities.”
LeapFrog Investments has been a long-term supporter of Goodlife Pharmacy, having invested since 2017. Before the acquisition, it held the majority stake in the company. Dr. Biju Mohandas, Partner and Head of Global Healthcare Investments at LeapFrog Investments, highlighted the significance of the transaction. “We are incredibly proud of Goodlife’s journey and its role in expanding healthcare access across East Africa. This transaction marks LeapFrog’s full exit from Goodlife. CFAO Healthcare is the right long-term partner to amplify Goodlife’s impact and drive the next phase of its expansion.”
The acquisition has received all necessary regulatory approvals, including from the Common Market for Eastern and Southern Africa (COMESA) Competition Commission, ensuring a smooth transition and continued growth for both entities.
This strategic move underscores the growing importance of the healthcare sector in East Africa and highlights the potential for further development and innovation in the region. As CFAO Healthcare continues to expand its footprint, the collaboration with Goodlife Pharmacy is poised to create new opportunities for patients, healthcare providers, and stakeholders across the continent.
