East Africa: CFAO Healthcare Ventures into Retail Health Market
By Sharon Atieno
CFAO Healthcare, the pharmaceutical arm of Toyota Group, has acquired full ownership of Goodlife Pharmacy, Kenya’s largest private retail pharmacy chain. This is in a bid to expand into East Africa’s retail health market.
Africa’s retail pharmacy market is projected to grow from about USD 70,053 million in 2024 to an estimated USD 86,600 million by 2032. Key drivers are the prevalence of chronic diseases, increased awareness of health and wellness, and an expanding middle-class population.
“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,” said Jean -Marc Leccia, CFAO Healthcare CEO, during a press briefing in Nairobi, Kenya’s capital.
Operating in 24 countries, CFAO Healthcare’s value chain starts upstream with manufacturing in two sites in Morocco and Algeria, with a capacity of 200 million units. It extends to pre-wholesale and wholesale.
“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 serves more than two million customers annually through in-store services, diagnostics, telemedicine, e-commerce, and home delivery. The pharmacy has nearly 150 branches in Kenya and Uganda.
“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,” said Justin Melvin, CEO Goodlife Kenya.
LeapFrog Investments has invested in Goodlife since 2017. Before the acquisition, it had been the majority shareholder.
“We are incredibly proud of Goodlife’s journey and its role in expanding healthcare access across East Africa,” said Dr. Biju Mohandas, LeapFrog Investments Partner and Head of Global Healthcare Investments. “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 deal has received all regulatory approval, including from the Common Market for Eastern and Southern Africa (COMESA) Competition Commission.