54 Capital have announced a USD30m investment in Addis Pharmaceutical Factory (APF), with the option to invest another USD12m. The company is headquartered in Adigrat, in the north of the country, and has factories in both Adigrat and Addis Ababa. It produces over 80 high quality pharmaceutical products for the Ethiopian market.
In an interview, 54 Capital investment associate Nathalie Bennett noted the policy-driven market opportunity for APF: ‘the Ethiopian Government is keen on reducing import bills and therefore prioritises and protects local manufacturers, with a target to increase their market share in tenders from about 20% to 50% by 2020 and 60% by 2025. This will take the form of a significant growth (30%-plus) of the tender market opened in priority to local manufacturers.’ Government owned investment firm Endowment Fund For The Rehabilitation of Tigrai (EFFORT) are partners in APF, which provides an additional layer of security.
54 Capital also own a stake in a mineral water bottling company as well as majority stakes, through a holding firm, in five companies companies in the flour, pasta and biscuit manufacturing, confectionery, personal care and edible oil sectors. Source: Africa Assets