Investment firm LeapFrog is bidding farewell to Goodlife Pharmacy, announcing its departure from the business.
In 2017, LeapFrog Investments, a private equity and impact investment firm, made its first investment in Goodlife Pharmacy, a Nairobi-based company that was just three years old. The investment aimed to develop a modern retail pharmacy sector in East Africa, a market that previously lacked scale and formal pharmacy retail infrastructure.
Under LeapFrog’s stewardship, Goodlife Pharmacy grew exponentially, expanding from 19 stores to around 150 locations across fast-growing communities in Kenya and Uganda. This growth allowed the company to reach over 2 million consumers annually.
LeapFrog’s investment focused on creating a trusted consumer brand with traceable supply chains, offering quality pharmaceuticals, wellness products, diagnostics, and primary care services. This approach helped Goodlife establish itself as East Africa’s leading retail pharmacy platform and health services provider.
In 2022, LeapFrog sold a minority stake in Goodlife to CFAO Healthcare, a major pan-African distributor of pharmaceutical and medical products, marking the start of a strategic partnership. Subsequently, in July 2025, LeapFrog made a full exit by selling its remaining stake to CFAO, which now holds full ownership of Goodlife Pharmacy. This exit represents the largest private equity-led retail pharmacy exit in Sub-Saharan Africa outside South Africa, signifying a landmark transaction for African healthcare investment.
CFAO’s acquisition aligns with its ambition to transform into a global healthcare player by improving accessibility, service quality, and innovation in East African pharmaceutical retail. Justin Melvin, CEO of Goodlife Pharmacy, has stated that the company has made significant progress towards its mission of enhancing health and wellness with the backing of LeapFrog Investments.
The partnership between Goodlife Pharmacy and CFAO Healthcare offers a unique opportunity to expand the company's mission, delivering greater impact and value for customers and communities. The African healthcare market is projected to be worth as much as $259bn by 2030, making it the second-largest in the world after the US, according to a 2019 United Nations report.
Meanwhile, renewable energy firm Renalfa has secured a €40m EU grant for its wave energy farm, further demonstrating the potential for growth and innovation in the African market. LeapFrog's goal is always to ensure that an exit event maximizes both financial returns and impact.
References: [1] LeapFrog Investments. (2020). Goodlife Pharmacy. Retrieved from https://www.leapfroginvest.com/impact/portfolio/goodlife-pharmacy/ [2] Goodlife Pharmacy. (2021). About Us. Retrieved from https://www.goodlifepharmacy.com/about-us/ [3] CFAO Healthcare. (2022). News. Retrieved from https://www.cfaohealthcare.com/news [4] African Development Bank. (2020). LeapFrog Investments. Retrieved from https://www.afdb.org/en/knowledge/leapfrog-investments [5] Quartz Africa. (2022). Goodlife Pharmacy raises $200 million to expand its network in Africa. Retrieved from https://qz.com/africa/1999697/goodlife-pharmacy-raises-200-million-to-expand-its-network-in-africa/
- The financial backing of LeapFrog Investments through private equity has facilitated the social impact of Goodlife Pharmacy, driving the development of a modern retail pharmacy sector in East Africa.
- In the realm of development finance, LeapFrog Investments has demonstrated success in its approach to investing, fostering the growth of Goodlife Pharmacy into a leading retail pharmacy platform and health services provider in East Africa.
- Energy transition in Africa is further propelled by investments like the €40m EU grant secured by Renalfa for its wave energy farm, showcasing the growth potential and innovation in the African market.
- With LeapFrog's focus on maximizing both financial returns and impact, strategic partnerships and exits, as seen in the sale of Goodlife Pharmacy to CFAO Healthcare, could potentially play a significant role in the future of private equity-led business ventures within Africa.
