CFAO Healthcare acquires 75% stake in Botswana’s pharma giant Medswana

BOTSWANA — CFAO Healthcare has strengthened its presence in Southern Africa after acquiring a 75% stake in Medswana, one of Botswana’s leading pharmaceutical wholesalers.

The deal marks another step in the company’s strategy to build an integrated pharmaceutical distribution network across Africa and follows the launch of its South African operations in 2024.

The acquisition was announced on July 8 and comes weeks after Botswana’s competition authorities approved the transaction.

Botswana offers an attractive market for the healthcare distributor because of its well-developed healthcare system and close commercial ties with neighbouring South Africa.

CFAO Healthcare believes the country will serve as an important hub for strengthening its regional supply chain while improving access to quality medicines.

Founded in 1994, Medswana has grown into one of Botswana’s largest pharmaceutical distributors.

The company manages more than 3,800 product lines sourced from over 200 suppliers.

From its distribution centre in Gaborone, it imports, stores, and delivers medicines and healthcare products to both public and private healthcare facilities across the country.

Following completion of the transaction, the business will operate under the new name Medswana Laborex and become part of CFAO Healthcare’s pan-African network.

This integration will allow the company to benefit from the group’s expertise in regulatory compliance, quality assurance, procurement, and logistics.

Leadership transition

The acquisition also brings a leadership change. Long-serving Chief Executive Officer Piet le Grange has retired following completion of the deal.

Mark Fallows, who previously served as Head of Operations, has been appointed Chief Executive Officer to lead the company through its next phase of growth.

Fallows said Medswana has spent decades supplying high-quality medicines to people across Botswana.

He noted that the company selected CFAO Healthcare because both organisations share strong ethical values and a commitment to improving healthcare access.

He added that the partnership will enable Medswana to respond more effectively to changing healthcare needs while expanding access to quality pharmaceutical products.

Philippe Franiatte, Chief Executive Officer of CFAO Healthcare’s Southern Region, described Botswana as a strategic market for the company’s regional ambitions.

He said partnering with Medswana and its experienced workforce would help strengthen Botswana’s pharmaceutical sector while creating stronger regional synergies.

Building an integrated African network

Jean-Marc Leccia, Chief Executive Officer of CFAO Healthcare, said the acquisition aligns with the company’s long-term vision of creating an integrated pharmaceutical distribution platform across Africa.

He said reliable supply chains are essential for improving access to medicines and that CFAO Healthcare aims to deliver consistent service, high-quality standards, and sustainable distribution solutions for healthcare providers and patients.

The Medswana acquisition continues CFAO Healthcare’s expansion strategy across the continent.

In recent years, the company has expanded its footprint through acquisitions in Mozambique and East Africa, including taking full ownership of Goodlife Pharmacy, as it builds a pharmaceutical network spanning manufacturing, wholesale distribution, and retail healthcare services.