mPharma partners with Belayab Pharmaceuticals to enter Ethiopia

Mar 11, 2021

mPhama, the high growth Ghana-based pharma supply chain startup, has entered Ethiopia. The expansion has come via a franchise agreement signed between mPharma’s Kenyan subsidiary, pharmacy chain Halton’s, and Belayab Pharmaceuticals. By law, foreign companies are unable to operate retail outlets in Ethiopia.

Founded in 2014, mPharma is a digital vendor management platform that manages prescription drug inventory for pharmacies and their suppliers. It acquired Kenyan pharmacy chain Haltons in 2019 following the successful closure of mPharma’s $12m Series B funding round. In May 2020 it raised a $17m funding in a Series C round bringing its total investment to $53.2m.

mPharma operates in Ghana, Kenya, Nigeria, Rwanda and Zambia, as well as Zimbabwe and Uganda. It claims to serve over 100,000 patients monthly and has distributed over a million drugs to Africans from 300 partner pharmacies across Africa.

Its Ethiopian partner Belayab Pharmaceuticals is a part of the Belayab Group conglomerate. It is the official franchise holder for Pizza Hut, Cold Stone Creamery and Kia Motors in Ethiopia. It also owns Bambis, one of the most iconic supermarkets in Addis Ababa (now co-branded as “Lewis Retails”) and operates the Golden Tulip and Tulip Inn hotels in Ethiopia.

mPharma’s plan is to open two pharmacies in Addis Ababa in 2020. Each pharmacy will offer mPharma’s consumer loyalty membership program called Mutti, which offers discounts and financing options for healthcare and medication.

Michael Ghebru of Belayab Pharmaceuticals sees the opportunity as “the entrance of Haltons Pharmacy will give patients a larger selection and convenience in Ethiopia through a consistent list of options at each location. Pharmacies in Ethiopia are largely driven by family businesses and there is a lack of consistent availability of products throughout the country. Haltons will be a crucial driver to help deliver critical drugs and products to patients throughout the country, including underserved areas.”

It’s a big step forward for mPharma into one of the most populous markets in Africa. However, Ethiopia is not without its challenges. These are a difficult, complex regulatory landscape, a predominantly low income and rural population, and major challenges acquiring the fx needed to pay for imported goods. The National Bank of Ethiopia gives priority for fx to certain products, which includes pharmaceuticals. Nonetheless, even priority goods can be subject to delays. Having a large, connected partner in Ethiopia helps with jumping up the priority list. So too, having a partner that exports (companies that acquire fx through the export of goods such as coffee or honey are allowed to use that fx for imports).

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