Africa Lighthouse snaps up Medlane stake

Lewanika Timothy | Monday May 19, 2025 07:25

Whilst healthcare remains a sector dominated by public investments, it is a growing area attracting private capital as frustrations over the public healthcare system continue to mount.

ALC will now be the majority shareholder in Medlane and hopes to vastly expand the Medlane business case into novel healthcare niches such as preventative care, complex surgeries, and post-surgical healthcare.

Leading the private equity firm, Bame Pule said that the expense was a growth-oriented investment that aimed to drive Medlane into greater profits and social impact.

“Medlane will not continue as business as usual; this is a growth-oriented investment and we will work with management to improve Medlane,” he said during the official signing ceremony in Gaborone on Tuesday.

Botswana has only two private equity investment firms with ALC having investment mandates from seven pension funds, one of them being the Botswana Public Officers Pension Fund.

Medlane will be the third company in the ALC investment stable joining funeral services provider FSG and Minet insurance services provider.

Quizzed on whether the investment in Medlane was induced by the new governments’ national health insurance policy, Pule said that the investment deal was in the books long before government changed. He added that the new intended health insurance scheme will serve to further support Medlane’s business case.

“We have been watching the performance of Medlane since its inception in 2019 and we began deal talks in 2022,” Pule said. “The coming of the national health insurance scheme can only serve to further support our business case and is an opportunity for the business to benefit from.”

Private equity firms buy companies and overhaul them to earn a profit when the business is sold again. Capital for the acquisitions comes from outside investors.

Pule said that the firm's exit strategy for Medlane would include a possible listing on the stock exchange given that the country has no listed healthcare company on the bourse.

“A listing is one possible exit strategy as there could be appetite for a listed healthcare service provider,” he said.