Both organizations plan to leverage their respective experience in Egypt’s leasing and healthcare sectors to develop financing plans tailored to meet the specific needs of start-ups breaking into Egypt’s healthcare market as well as for more established small- and medium-sized enterprises (SMEs).
There are substantial variations in the geographic distribution of healthcare facilities in Egypt with Upper Egypt being relatively under-served. The majority of the healthcare facilities in the rural governorates are small, private health clinics and diagnostic centers. Most small and medium-sized private clinics in Egypt have limited access to financing from banks due to the perceived high investment risks. As a result, they are not able to invest in medical equipment, carry out necessary renovation works or recruit qualified personnel.
Infrastructure constraints see the sector struggling to provide affordable, high-quality services. The absence of flexible and innovative financing solutions makes it particularly challenging for new companies including hospitals, clinics, diagnostic centres, and pharmaceutical manufacturers to acquire critical medical equipment and infrastructure.
The collaboration between Philips and EFG Hermes Leasing will encourage sustainable growth across the healthcare industry in Egypt and facilitate the acquisition of medical imaging systems (including CT scanners, mammography systems, and MRI systems), digital x-ray suites, diagnostic ECGs, fluoroscopy systems, as well as interventional devices, therapies and other products.
“We are excited to combine our deep, on-the-ground experience with Philips’ extensive knowledge in the healthcare sector to develop customized financing solutions that will help unlock the growth potential of the country’s healthcare SMEs and start-ups,” said Ahmed El Kholy, CEO of EFG Hermes Leasing. “Combined with our market-leading turnaround time, tailored finance structuring, expert advisory and emphasis on a long-term relationship with our clients, we will reduce high barriers to entry and help catalyse the affordability of healthcare equipment.”
“Philips aims to contribute substantially to improving healthcare in Egypt through innovative solutions that are tailored to local needs. Many small and medium sized clinics and health facilities across our country would like to invest in new medical technology, but find it difficult to obtain the necessary finance. Through this collaboration we enable them to make quality Philips healthcare solutions available to a large group of people who need them the most. This also represents the next step in the further expansion of our activities in Egypt,” says Sameh F. Gabra, General Manager, Philips Egypt & North East Africa.
Egypt’s growing population and low rates of insurance coverage have created opportunities for healthcare start-ups and expansion potential for existing players. The vendor cooperation program between EFG Hermes and Philips Egypt is a financial leasing solution to provide companies with value-added advisory services and tailored financing plans that will enable clients to acquire critical assets that meets their business goals and match global healthcare best-practises. Ultimately, this collaboration will bolster the development of Egypt’s healthcare system as a whole by providing assistance and equipment to individual facilities and service providers.