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Ibnsina Pharma, banks partner to offer microfinance services to pharmacies - Daily News Egypt

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Ibnsina Pharma, banks partner to offer microfinance services to pharmacies

Company to launch 2nd version of its mobile application, introducing new features such as online payments, during H1 of 2021


Ibnsina Pharma is planning to offer microfinance services to pharmacies, in partnership with banks and financial institutions.

A source said that digital transformation is a key focus in Ibnsina’s long term growth strategy. The company is looking to introduce digital innovations to the Egyptian pharmaceutical supply chain market.

During the first half (H1) of 2021, Ibnsina will launch the second version of its mobile application, that is set to introduce new features such as online payments. This feature is expected to lead to Ibnsina reducing its operational costs, particularly if the app is widely implemented.

The company’s network optimisation plan aims to improve its warehouse system. This will take place by creating different types of warehouses with different roles and storage capacities in order to enhance product availability, and maximise asset utilisation.

Ibnsina plans to invest around EGP 140m during 2021, which is 30% lower than 2020. Investments during 2021 will be directed towards expansion and network optimisation, upgrading existing warehouses, and technological developments.

Capex is to be 80% financed through medium term loans, with the remaining 20% to be financed from internal resources.

The government is currently avoiding imposing lockdowns during the second wave of the novel coronavirus (COVID-19) pandemic. As a result of this, the management believes that this would shield the pharma market against the negative implications that happened during the first wave of the pandemic.

During 2021, management expects total pharma market growth of 10-12%, compared to 6-8% in 2020, which should be driven by the retail sales during H1 of 2021 and non-retail sales during H2 of 2021.

Egypt’s retail market is expected to grow by 10% in 2021, compared to around 4% in 2020. According to management, the retail pharma sales contribution should gradually go back to the normal 70% contribution as soon as retail market recovers following the 2020 hit.

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https://dailyfeed.dailynewsegypt.com/2021/03/08/ibnsina-pharma-banks-partner-to-offer-microfinance-services-to-pharmacies/
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