Marengo Asia Hospitals (India), Metropolitan Hospitals Limited (Kenya), and Zoscales Partners AG (Switzerland) announced partnership
Nairobi, Kenya – October 23, 2024 – Marengo Asia Hospitals, Metropolitan Hospitals Limited, and Zoscales Partners have announced a partnership aimed at expanding clinical capacity, enhancing medical training, and improving healthcare accessibility across East Africa. This collaboration addresses the region's growing need for specialized healthcare services, focusing on making advanced tertiary care accessible, affordable, and sustainable for underserved communities.
The multi-year partnership seeks to transform Metropolitan Hospitals into a regional leader in tertiary care by enhancing its clinical capabilities to deliver high-quality, specialized services. Marengo Asia Hospitals, drawing on its extensive experience in India’s healthcare sector, will provide specialized knowledge and clinical expertise focused on prevention and treatment. Metropolitan Hospital will elevate its service delivery and patient outcomes, establish Centres of Excellence (CoE) for key super specialties and provide doctors with opportunities to publish research in leading journals. Zoscales Partners brings key resources and deep local insights, offering market expertise that drives the partnership's strategic direction. With innovative solutions addressing East Africa's unique healthcare challenges, Zoscales ensures the partnership achieves lasting impact. By combining these resources with a nuanced understanding of the region’s market dynamics, Zoscales unlocks strategic opportunities, guiding the platform toward transformative success.
“By upgrading our clinical services and expanding access to advanced healthcare, we are not only improving the quality of care but also making it more affordable and accessible to a broader population,” said Dr. K. K. Gakombe, Founder and CEO of Metropolitan Hospitals Limited. “This partnership with Marengo Asia Hospitals and Zoscales Partners enables us to significantly expand our reach and amplify our positive impact,” he added.
“Marengo Asia Hospitals is proud to share its knowledge and best practices from India to support Metropolitan Hospitals in delivering affordable world-class healthcare in East Africa. As strong advocates of building Clinical Corridors across regions, we believe in the power of the 3 Ts – Teach, Train, and Treat – to elevate healthcare standards worldwide. We are deeply committed to capacity building, raising healthcare standards, and promoting collaboration across borders. With a proven track record of establishing Centers of Excellence (CoEs) in and tertiary care in Mongolia and the Asia Pacific, we continue to drive international collaboration and enhance healthcare capabilities," said Dr. Raajiv Singhal, Founding Member, Managing Director, and CEO of Marengo Asia Hospitals. "Our holistic approach to developing CoEs includes comprehensive team planning, infrastructure development, compliance, creating protocols, and training all department stakeholders," he added.
“This partnership underscores our commitment to making a meaningful difference where it matters most—improving access to quality healthcare,” said Jacop B. Rentschler, Co-Founder and Managing Partner at Zoscales Partners. “By combining Marengo Asia Hospitals’ world-class expertise with Metropolitan Hospitals’ local strength, we are building a transformative platform that will boost clinical capacity and expand sustainable healthcare access for communities across East Africa.” he concluded.
Pic of Dr. K. K. Gakombe, Dr. Raajiv Singhal, and Ruth Wanjiru
About the Partners:
Marengo Asia Hospitals is an integrated network of multi-specialty hospitals dedicated to providing tertiary and quaternary care. The organization focuses on creating ‘centres of excellence’ across various medical specialties while prioritizing a ‘patient-first’ approach. Under the leadership of Dr. Raajiv Singhal, the Founding Member, Managing Director, and Group CEO, Marengo Asia Hospitals has rapidly expanded to a capacity of over 1,700 beds across five hospitals, supported by a team of more than 480 skilled doctors. In its pursuit of excellence, Marengo Asia Hospitals has embarked on a mission to create Clinical Centres of Excellence that set new standards for healthcare quality, innovation, and measurable outcomes. The organization's goal is not just to provide healthcare services but to elevate the entire healthcare experience for patients and their families. Marengo Asia Hospitals is also proud to advance the International Clinical Corridor—an innovative collaboration between its experts and the health ministries of partner countries to establish Centres of Excellence (CoE) for specific medical specialties. Through this initiative, doctors, nurses, and healthcare staff from partner countries receive comprehensive training in India, equipping them with advanced skills to enhance healthcare services in their home countries. Marengo Asia Hospitals is committed to fostering an environment of healing, innovation, and trust, serving as a cornerstone of health and wellness in the communities it serves.
Metropolitan Hospitals Limited is a Level 5 facility located in Buruburu, in the Eastlands area of Nairobi County. Over the past 30 years, the hospital has evolved into Eastlands’ premier medical hub, featuring state-of-the-art facilities such as an ultramodern doctor’s plaza, a fully equipped Accident and Emergency department, advanced modular theatres, an Intensive Care Unit (ICU), Neonatal ICU, High Dependency Unit (HDU), and comprehensive Imaging and Laboratory services. Metropolitan is accredited by the Council for Health Service Accreditation (COHSASA) for maintaining quality standards. Committed to delivering high-quality, affordable care, the hospital has bold plans for regional expansion, reinforcing its dedication to excellence and accessibility.
Zoscales Partners, founded in 2014, is a Swiss-based investment management firm specializing in high-impact investments across Eastern Africa. With regional offices in Ethiopia and Kenya, Zoscales Partners is committed to driving sustainable development through investments that deliver long-term value and tangible improvements in healthcare and other essential sectors.
Zoscales commits to gender-lens investing
Zoscales Partners has a mission aligned to delivering impact, and in particular on delivering opportunity, equity, and access to women. We have progressively increased the sophistication of our gender-based KPIs and improved our monitoring and reporting. This year we are proud to announce that our entire portfolio meets Gender 2x criteria — and that several companies are eligible in multiple categories.
The Gender 2X Challenge is a DFI-founded initiative that seeks to support businesses that provide women in emerging economies with access to leadership opportunities, quality employment, and products and services that enhance their economic participation and inclusion. An organisation needs to meet at least one of the five criteria to qualify as a “2X investment”: www.2xchallenge.org/criteria.
“Zoscales decided to join the Gender 2x Challenge because we firmly believe in the mission to not just accelerate women’s empowerment and equity through our investments, but to be advocates for this within the private equity industry as well. In working with ZP over the last years, we have improved the sophistication of our gender metrics and improved our gender-based KPIs year on year. The next step will be wider collaboration across the industry.”
Building on our work in gender equity, we developed a manual for implementing gender lens investing, and are continuing to build the requisite capacity within our portfolio companies. Across the portfolio, we have achieved a women-positive workforce at 56%, up from 37% in 2019. This is not merely a fringe development, but we believe it will reflect in improved employee engagement and organizational performance. We are taking steps to encouraging investees to collect data on women employees and consumers, to measure the development impact of investing with and in women over time, and to make a business case for investing with and in women.
We believe when women are engaged in enterprises as senior managers, leaders, and executors, those enterprises will improve how they operate, innovate, and deliver for their communities.
The entire portfolio meets Gender 2x criteria — several companies are eligible in multiple categories
100%
of Zoscales Fund I portfolio companies meets the Gender 2X criteria
67%
of Zoscales Fund I portfolio companies have more than 40% women in senior management
67%
of Zoscales Fund I portfolio companies have more than 55% female employees
50%
of portfolio companies have products or services that disproportionately benefit women
33%
of Zoscales Fund I portfolio companies have female board members
Our gender goals
Incorporate gender equality into deal sourcing and diligence process by favouring companies which perform in line with the Gender 2X criteria
Ensure that all portfolio companies include gender equality in their Environmental and Social Management Systems (ESMS)
Monitor 2X indicators for all portfolio companies
For Zoscales Fund II, 50% female ownership of the portfolio
About the Gender 2x Challenge
The “2X Challenge” was launched at the G7 Summit 2018 as a commitment by DFIs to collectively mobilize USD 3 billion in private sector investments that provide women in developing country markets with improved access to leadership opportunities, quality employment, finance, enterprise support and products and services that enhance economic participation and access. The original target was 3x overachieved, with the DFIs investing $6.9 billion and with co-investments taking the total to $11.4 billion. At the G7 Summit 2021, 20 global DFIs committed to a new target of $15 billion for the period 2021-2022. For further information, please visit: https://www.2xchallenge.org/.
About Zoscales Partners
Witnessing the high growth potential of local small- and medium-sized enterprises across East Africa, Zoscales Partners was founded in 2014 to give international investors access to the rapidly growing East African markets that offer a wide range of investment opportunities. With local offices in Ethiopia and Kenya, Zoscales combines its international investment experience with its deep local knowledge and extensive network to deliver sustainable and long-term returns with positive impacts on society. Due to their growth potential and promising exit paths, Zoscales focuses on the consumer goods and healthcare sectors.
Zoscales has undertaken six private equity investments across Ethiopia and Kenya via Zoscales Fund I, a $75m fund launched in 2017 and backed by a mix of commercial investors and development financial institutions. Zoscales Fund II will launch in 2023.
Bloomberg: IFC, FMO-Backed Fund Seeks $200 Million for East Africa Ventures
By Eric Ombok
Zoscales Partners to plough proceeds in seven to nine firms
Most investments will be in consumer goods, health care
Zoscales Partners AG, a private equity fund that invests in small and medium enterprises in East Africa, has begun a $200 million fundraising round whose first close is scheduled in the second half of this year and final one in 2023.
Read the full article here: IFC, FMO-Backed Fund Seeks $200 Million for East Africa Ventures - Bloomberg.
Zoscales Partners 2021 Impact Report
Job creation, affordable healthcare, clean water, and climate action. Zoscales Partners records tremendous progress in identifying, creating, and measuring impact in its 2021 Impact Report.
Since its founding in 2014, Zoscales Partners has not only delivered competitive financial returns but has generated measurable impact and contributed to sustainable economic growth and quality job creation in East Africa – a region characterised by many high-growth, high-impact investment opportunities. Via its portfolio investments local SMEs, the firm has created more than 800 quality jobs across Ethiopia and Kenya since 2018, invested USD 15m in healthcare expansion, supported quality education and secured clean water for local communities.
“Impact is at the heart of what we do at Zoscales Partners. It is not only part of what we do. It is also a very important part of who we are.” says Jacop B. Rentschler, Co-Founder and Managing Partner of Zoscales Partners.
Zoscales Partners’ key impact achievements in 2021 include:
337 quality jobs created across East Africa all of which were given health and accident insurance cover
3,551 scans provided with discount to low-income patients in Ethiopia
500 farmers with a combined 20,000 herd of cattle supported with access to clean water
58% women in the portfolio workforce, up from 55% in 2020
$12.9 million invested in healthcare expansion in East Africa
110,732 fresh graduates linked to job opportunities
2,000 trees planted across three portfolio companies’ communities
“Despite the Covid-19 crises and other extreme challenges we faced in 2021, we strengthened our core business. But we also never lost sight of our responsibility towards our communities. We took actions that fight climate change, secure clean water, and support affordable healthcare.” says Ashenafi Alemu, Co-Founder and Managing Partner.
For more information, please send an email to info@zoscales.com.
About Zoscales Partners
Witnessing the high growth potential of local small- and medium-sized enterprises across East Africa, Zoscales Partners was founded in 2014 to give international investors access to the rapidly growing East African markets that offer a wide range of investment opportunities. With local offices in Ethiopia and Kenya, Zoscales combines its international investment experience with its deep local knowledge and extensive network to deliver sustainable and long-term returns with positive impacts on society. Due to their growth potential and promising exit paths, Zoscales focuses on the consumer goods and healthcare sectors.
Zoscales has undertaken six private equity investments across Ethiopia and Kenya via Zoscales Fund I, a $75m fund launched in 2017 and backed by a mix of commercial investors and development financial institutions. Zoscales Fund II will launch in 2022.
Zoscales Partners backs Kenyan hospital for Fund I's sixth deal
Zoscales Partners is pleased to announce its commitment to invest into Premier Hospital, marking its second healthcare deal in East Africa and sixth investment in Zoscales Fund I. Premier Hospital is a secondary private hospital located in Mombasa, Kenya, with a proven reputation for efficiency, service, and high-quality emergency, outpatient and inpatient care. The transaction, which is subject to Competition Authority of Kenya and other statutory approvals, is expected to close before the end of the year.
“In Premier Hospital, we will be privileged to have the opportunity to back a team that has shown total dedication to excellence in healthcare provision. The organization is at the forefront of providing high-quality, affordable care, and as we embark on this partnership, we will seek to develop more sophisticated specializations to serve patients across East Africa. Through this investment, we hope to play a meaningful part in addressing the objectives for SDG 3,” says Partner Fredd Kambo who led the deal.
Since the start of the pandemic in 2020, East Africa’s healthcare systems have been overwhelmed. Zoscales therefore believes that now is the opportune time to invest in this sector and support those who have been at the frontline during these challenging times. Using its industry knowledge and local expertise, Zoscales’ Kenya team plan to work alongside management and current shareholders to support Premier Hospital’s new phase of expansion, with the ambition to develop a healthcare platform to become one of East Africa’s largest private hospital operators. Crucially, this investment will also expand healthcare access to low- and middle-income individuals, thereby promoting more inclusive healthcare access for both the COVID and post-COVID world.
According to Dr Fardosa Ahmed, Founder and Director of Premier Hospital, “We are excited to engage in this partnership with Zoscales Partners. In Zoscales, we have found a team that not only can provide capital, but one that is committed also to operational excellence, the highest standards of clinical quality, and a commitment to making a real difference in the provision of East African healthcare.” For more information about the transaction, please contact Zoscales Partners at info@zoscales.com.
Nairobi, September 2021. “As we sign these agreements today, I want us to all to remember that it is not just about the financing we will receive, we are all here to do good. Enabling hospitals to treat more people and offer more services is doing good for humanity. That is what we are all here to do.” says Chairman Ahmed Abdulle Noor.
About Zoscales Partners
Established in 2014, Zoscales Partners is an award-winning private equity firm with offices in Nairobi, Addis Ababa and Zurich. The $75m Zoscales Fund I was launched in 2017 and invests with impact in East African SMEs within healthcare, FMCG, materials and others. Zoscales was one of the first and only private equity investors with a full-time presence in East Africa using an “operating partner model” that integrates successful local entrepreneurs into the investment strategy. This ensures an active involvement in portfolio operations and a deep knowledge of the local business environments. Zoscales Fund II will launch in 2022.
About Premier Hospital
Established in 2017, Premier Hospital is a leading healthcare provider in Kenya. The business is located along Links Road, Nyali Area in Mombasa County with a population of 1.2 million, which is the second most populous city in Kenya. The business is rated highly in its mid-tier category. This is backed by a well-established presence, its top-tier physicians, a variety of clinical services including paediatrics, obstetrics and gynaecology, orthopaedics and emergency services, consistent clinical capabilities and excellent customer care developed by the management team. The hospital has attained SafeCare accreditation. For more information about the hospital, please visit https://premierhospital.org.
For this transaction, Zoscales Partners received legal advisory services from Asafo & Co.
AfriNova Consulting Limited and Capital Law Group advised Premier Hospital on the transaction.
Zoscales Partners recognized for sustainability strategy
For the second consecutive year, Zoscales Partners has received an award for Best Sustainable Investment Strategy East Africa 2021. The prize has been awarded by Capital Finance International (CFI.co) and they chose Zoscales as the winners in all asset classes.
The founders of Zoscales Partners, Jacop Rentschler and Ashenafi Alemu are very proud to once again receive a recognition of their investment strategy.
“We integrated the United Nations Sustainable Development Goals, the SDGs, into our investment strategy in 2019 and we were honored to receive the first award in 2020. But getting international recognition of our efforts, two years in a row, makes us immensely proud,” says partner Ashenafi Alemu from Zoscales Partners.
Zoscales Partners believes that the SDGs provide a sound guide to identifying, creating, and measuring impact. They focus their investment strategy on delivering on SDGs 3, 4, 6, 8, 11, and 13.
The focus on the SDGs is also recognized by CFI.co.
“Zoscales Partners identifies six SDGs where its operations have the most impact and offers training, workshops and scholarships. It finances clean water and sanitation projects, integrates climate action across investments and catalyses the development of sustainable cities and communities. The firm has generated high returns for investors while creating over 500 quality jobs across East Africa. They focus on diversity by hiring more female employees in the companies and expect to double job creation in this area before year end,” CFI writes in their statement.
You can read the full statement here.
In 2020, Zoscales received the same award for Best Sustainable Investment Strategy East Africa and in 2019, Zoscales received an award as the Best East African Fund Manager of the Year by SuperReturn.
About Zoscales Partners
Zoscales Partners (ZP) with local offices in Addis Ababa and Nairobi invests in private equity with impact. In 2017, they launched a $75m fund which has since created 500 jobs in East Africa. A second fund launch is expected later this year, and ZP anticipates the creation of another 600 jobs in the region by the end of 2021. Based on the philosophy that social impact and commercial return go hand in hand, ZP ensures that profit-seeking never comes at the expense of positive outcomes for society.
For further information, please contact us at info@zoscales.com.
Zoscales Partners signs the UN-supported PRI
To underline its commitment to integrating best-in-class environmental, social and governance (ESG) criteria in its investment decisions and supporting best practices in stewardship and transparency, Zoscales Partners has now become a signatory of the United Nations-supported Principles for Responsible Investment (PRI).
“We are pleased to join the world’s leading proponent of responsible investment,” says Managing Partner Jacop B. Rentschler. “Becoming a signatory of PRI is a natural step for us in our journey towards achieving our ever-improving ESG and impact goals. We are looking forward to showcasing our results.”
As a means to drive value, protect downside risk and ensure positive impacts, Zoscales Partners has been committed to implement and track ESG factors since Fund I inception in 2017. The decision to sign the UN-supported PRI reinforces this commitment and affirms Zoscales Partners’ stated goal to invest responsibly and continuously improve processes and practices, emphasizing good stewardship, engagement and transparency.
The UN-guided PRI is a set of six principles that outline the signatories’ commitment to incorporate, promote and report on ESG issues in investment practices and decision-making:
We will incorporate ESG issues into investment analysis and decision-making processes.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
We will promote acceptance and implementation of the Principles within the investment industry.
We will work together to enhance our effectiveness in implementing the Principles.
We will each report on our activities and progress towards implementing the Principles.
About Zoscales Partners
Zoscales Partners is a private equity firm investing with impact in East African SMEs with superior return potential. The industry focus includes healthcare, FMCG, and materials. Zoscales launched its first fund, Zoscales Fund I, in the beginning of 2017 and will launch Zoscales Fund II in 2021. Zoscales Partners has been awarded East African Fund Manager of 2019 by SuperReturn and Best Sustainable Investment Strategy East Africa 2020 by CFI.
For more information about Zoscales Partners’ approach to ESG and impact, please visit https://www.zoscales.com/impact.
Zoscales Partners strengthens its operating partner and senior advisory line-up
Zoscales Partners has strengthened its operating partner and senior advisory line-up with three new appointments: Peter Njoka, Adema Sangale and Tenke Zoltani. All three bring extensive investment, operational and impact experience to the firm.
“We are delighted that Zoscales can attract such experienced and respected persons to join our team,” says Jacop B. Rentschler, Managing Partner and Co-Founder of Zoscales. “Peter and Adema will strengthen our local entrepreneur model, allowing Zoscales Partners to integrate successful entrepreneurs into its investment strategy and create overall operational value. Tenke is putting together impact principles fundamental to our approach at Zoscales. Lastly, Adema and Tenke’s appointments mean that we realise a gender balance in our advisory board. Zoscales now has one of the strongest teams in Africa.”
Adema Sangale joined as Operating Partner at Zoscales Partners and supports the strategic value creation strategies of Zoscales Partners’ FMCG investee companies and serves on the board of Ethio-Asian Industries S.C. She is currently focused on evolving established African-headquartered enterprises to the next level of growth. Adema’s professional expertise was built throughout her 17-year career working for Procter & Gamble in various leadership roles across Africa, Europe and North America. Adema was an Edward S. Mason Fellow at the Harvard Kennedy School of Government (USA) from which she graduated with a Master in Public Administration and Public Policy. She also holds an MBA from the University of Oxford (UK) which she attended as a Chevening Scholar.
Peter Njoka joined as Operating Partner at Zoscales Partners and Advisor in a non-executive role to the Investment Committee. Peter spent over 20 years in private equity and investment management. As Managing Director at Abraaj for 17 years, Peter was instrumental in building the firm’s Africa presence and was responsible for key East Africa transactions. One of these transactions included the transformative acquisition of a position in Brookside Africa Limited, the largest dairy processor in East Africa, where he is still a Member of the Board of Directors. Peter holds a BSc in Mathematics and Physics from the University of Nairobi (Kenya).
Tenke Zoltani is Senior Impact Advisor to Zoscales Partners and comes with over a decade of experience in impact investing origination, diligence, execution and monitoring. She is a Development Finance Advisor to the UN, a Committee Member of 100 Women in Finance, a member of Sustainable Finance Geneva and sits on several impact investing fund boards. Previously, Tenke was Director, Impact Investing at UBS where she built the impact investing advisory offering for UHNW clients. Tenke holds a BA in Economics and Political Science from Columbia University (USA) and an MSc in International Political Economy from The London School of Economics and Political Science (UK).
Zoscales Partners 2020 Impact Report
Job creation, better employment terms, improved diversity, and more clean water supply
At Zoscales Partners, we are committed to delivering on key SDGs and to adhering to strict ESG criteria as a part of our investment origination, monitoring, and execution. Although 2020 turned out to be a very challenging year for global health and financial goals, our efforts bore fruit as our companies proved resilient.
In 2020, some of our achievements include:
125 new jobs created in Ethiopia.
373 workers newly covered by healthcare and accident policies, and 219 newly covered by labour unions.
55% female employees across our portfolio (from 37% the previous year).
150 households supplied with clean water in Addis Ababa and Bishoftu.
1,550 trees planted across three companies’ sites and communities.
10,432 patients served with CT scan and 5,812 patients provided with ultrasound services via Zoscales’ investment in Pioneer Diagnostics Center.
16 health trainings provided for workers: 10 trainings on Covid-19 awareness and prevention, three trainings on Infection Prevention and Control (IPC), and three trainings on first aid and CPR.
11,735 jobseekers linked to employment opportunities through Africa Jobs Networks.
50,000 people using soap for the first time.
1,000 4g-enabled tables donated to support the effort of the Ethiopian Public Health Institute in spearheading the national response system to the Covid-19 pandemic.
“We have always believed that we are in the right geography to deliver impact without compromising financial goals. This is now proven because we achieved such impact in this most challenging year.” says Ashenafi Alemu, Managing Partner and co-founder of Zoscales Partners.
This year, our ESG and impact approach was validated by international partners like IFC and BIO, who supported us through technical assistance.
About Zoscales Partners
Zoscales Partners invests in private equity with impact. Since Fund I (USD 75m) inception in 2017, Environment, Social and Governance (ESG) issues have been an integral part of Zoscales’ investment process, and they have always had an impact objective in the companies they invest in. Not only are they motivated to invest in the improvement of life and environment for the people of East Africa, but they believe that ESG and impact is a potential source of alpha creation as well as protector of downside risk. ZP has been awarded "East African Fund Manager of 2019" by SuperReturn and "Best Sustainable Investment Strategy East Africa 2020" by CFI.
If you wish to receive the Zoscales Fund I 2020 Impact Report, please email us at info@zoscales.com.
