Eos Capital, a Namibian private equity fund manager that is managing the Allegrow Fund, has acquired 35% of the ordinary share capital of Fabupharm, the only pharmaceutical manufacturing plant in Namibia.
The transaction is pending Namibian Competition Commission approval.
The investment will support Fabupharm in its ambition to become a major player in the Namibian and regional pharmaceutical markets.
Johannes Gawaxab, Eos Capital Executive Chairman, said: “Business Monitor International estimates the Namibian Pharmaceutical market to be in the region of N$3bn in 2016 – our aim is to localize more of this market to the benefit of Namibians by expanding on local manufacturing capacity and expertise currently residing in local player Fabupharm.”
“This is consistent with the Industrialization and Growth at Home strategies of the Government. We are open to public private partnerships and are willing to assist Government in setting up its long-desired Government pharmaceutical plant off the strong base that Fabupharm has built over many years,” he said.
Established in 1989, Fabupharm manufactures paracetamol, antibiotics, vitamin supplements, body lotions and sunscreen, to name a few products on an ever-expanding locally-produced product catalogue.
These products are for sale to the public at local retailers and pharmacies.
Many are also stocked by Central Medical Stores who supply Government’s hospitals and clinics with medical and pharmaceutical products.
Fabupharm has also obtained export approval for several of its products which are to be shipped to Botswana, Mozambique and Lesotho, among other destinations.
The company employs more than 70 Namibians and conforms to stringent World Health Organization standards that are required to manufacture pharmaceutical products.
Existing majority shareholder and local retail distribution player, Carl Brinkmann, said that he “is excited about the growth prospects of the business and the potential to uplift the profile of the Namibian manufacturing sector, which has been dominated by international players for so long”.
Allegrow Fund is a growth and operational development fund with a Namibia-only mandate.
The fund invests in Namibian companies, which have the potential to grow rapidly and will provide them with the capital and management support needed to unlock their full potential.
Allegrow Fund is a private company registered as a special purpose vehicle with Namfisa in terms of the Pension Fund Regulation 29.
It has a fund target of between N$500m and N$750m and a term of 10 years.
Fanie Badenhorst, Fabupharm founder and Managing Director, said: “We are pleased to welcome Eos Capital as partners and shareholders of the company. We at Fabupharm are looking forward to unlocking new growth potential with the addition of Eos Capital’s expertise in the extension of the business in the local, public and export markets.” Source: Africa Global Funds