French healthcare group CFAO Healthcare has completed the acquisition of a 75 percent stake in Botswana pharmaceutical distributor Medswana, following regulatory approval by the Competition and Consumer Authority (CCA) last month.
The transaction brings Medswana into CFAO Healthcare’s regional distribution network, with the company set to operate under the new name Medswana Laborex.
The acquisition strengthens CFAO Healthcare’s presence in Southern Africa as it pursues an integrated pharmaceutical distribution platform across the continent. The company entered South Africa in 2024 through the acquisition of Sanofi’s consumer healthcare business, Opella Healthcare South Africa, and Medimport, one of Mozambique’s leading pharmaceutical distributors, from Portuguese pharmaceutical company BIAL. It also recently acquired Goodlife Pharmacy, East Africa’s largest private retail pharmacy chain.
Founded in 1994, Medswana is one of Botswana’s largest pharmaceutical wholesalers, importing, storing and distributing medicines to both public and private healthcare providers. The company supplies more than 3,800 product lines sourced from over 200 suppliers through its distribution centre in Gaborone.
CFAO Healthcare said Botswana’s relatively advanced healthcare system and its close economic ties with South Africa made the country a strategic market for its regional expansion.
The ownership change will also usher in new leadership at Medswana. Long-serving Managing Director Piet le Grange will retire, with Mark Fallows appointed Chief Executive Officer to lead the business through its next phase of growth.
Fallows said the partnership would strengthen the company’s ability to respond to Botswana’s evolving healthcare needs.
“Medswana has proudly served the people of Botswana for decades by providing access to quality medicines. We chose CFAO Healthcare as our partner and shareholder because we share the same vision, strong ethical values and commitment to improving healthcare outcomes,” he said.
CFAO Healthcare Southern Africa Managing Director Philippe Franiatte said the acquisition would support the development of Botswana’s pharmaceutical sector while strengthening regional supply chain integration.
In approving the transaction, the CCA concluded that the merger was unlikely to substantially lessen competition in Botswana’s pharmaceutical market.
According to the Authority’s assessment, the two companies operate at different levels of the pharmaceutical supply chain. CFAO Healthcare, through its subsidiary E.P.DIS, exports pharmaceutical products to wholesalers and distributors across Africa, while Medswana operates downstream as a wholesaler supplying retailers and healthcare institutions within Botswana.
The CCA noted that CFAO Healthcare did not supply Medswana before the acquisition, meaning there was no existing vertical commercial relationship between the companies. It also found that competing suppliers and diversified sourcing arrangements would continue to exert competitive pressure after the transaction.
“The merger is not expected to alter the market structure, and the status quo is expected to be maintained post-implementation,” the Authority said.
The regulator concluded that the acquisition was unlikely to reduce competition, disrupt continuity of supply or adversely affect the public interest.
CFAO Healthcare operates one of Africa’s largest pharmaceutical distribution networks, supplying medicines and healthcare products across 26 African countries and six overseas territories. Through its Laborex network, the group serves more than 11,000 retail pharmacies across Anglophone and Francophone Africa, while also manufacturing licensed medicines in Morocco and Algeria and operating the Goodlife Pharmacy retail chain in Kenya and Uganda.
