To ease your site search, article categories are at bottom of page.

March 31, 2010

South African firms launch $408 million farmland fund

Two South African asset management firms launched a 3 billion rand farmland investment fund on March 24 that is expected to help boost agricultural development in Africa's biggest economy.

The Futuregrowth Agri-Fund, launched by Old Mutual South Africa unit Futuregrowth Asset Management and UFF Asset Management, plans to tap institutional investors for the cash, which will be invested in farms in South Africa.

"Typically, the fund will purchase a farm, retain the workforce and appoint a professional operator with a strong marketing and distribution network," Erwin Bouland, Investment Manager at UFF Asset Management said in a statement.
"Access to working capital will be sourced by the operator."

South Africa has one of the continent's most developed agriculture sectors and is Africa's top maize producer as well as the third largest wheat grower.

The companies said the fund will invest in farmland, agri-businesses and farming infrastructure related to the land.

"In addition, the fund has a strong socially responsible component. Benefits to farm workers and the broader rural community include employment, skills transfer, healthcare, education, access to services and housing," Futuregrowth Fund Manager, James Howard said.

He said the fund would target local and international state-owned and private pension funds as well as local development institutions.

"It will provide access to stable, long-term returns within the context of continuing development in the agricultural sector," Howard said.

Investors have taken a keen interest in farmland across Africa since food shortages in 2008 triggered global food price spikes.

Interest in farmland investment has also been spurred by losses incurred by money managers during the financial crisis of the last two years.

Reuters

Article Categories

AGRA agribusiness agrochemicals agroforestry aid Algeria aloe vera Angola aquaculture banana barley beans beef bees Benin biodiesel biodiversity biof biofuel biosafety biotechnology Botswana Brazil Burkina Faso Burundi CAADP Cameroon capacity building cashew cassava cattle Central African Republic cereals certification CGIAR Chad China CIMMYT climate change cocoa coffee COMESA commercial farming Congo Republic conservation agriculture cotton cow pea dairy desertification development disease diversification DRCongo drought ECOWAS Egypt Equatorial Guinea Ethiopia EU EUREPGAP events/meetings expo exports fa fair trade FAO fertilizer finance fisheries floods flowers food security fruit Gabon Gambia gender issues Ghana GM crops grain green revolution groundnuts Guinea Bissau Guinea Conakry HIV/AIDS honey hoodia horticulture hydroponics ICIPE ICRAF ICRISAT IFAD IITA imports India infrastructure innovation inputs investment irrigation Ivory Coast jatropha kenaf keny Kenya khat land deals land management land reform Lesotho Liberia Libya livestock macadamia Madagascar maiz maize Malawi Mali mango marijuana markets Mauritania Mauritius mechanization millet Morocco Mozambique mushroom Namibia NEPAD Niger Nigeria organic agriculture palm oil pastoralism pea pest control pesticides pineapple plantain policy issues potato poultry processing productivity Project pyrethrum rai rain reforestation research rice rivers rubber Rwanda SADC Sao Tome and Principe seed seeds Senegal sesame Seychelles shea butter Sierra Leone sisal soil erosion soil fertility Somalia sorghum South Africa South Sudan Southern Africa spices standards subsidies Sudan sugar sugar cane sustainable farming Swaziland sweet potato Tanzania tariffs tea tef tobacco Togo tomato trade training Tunisia Uganda UNCTAD urban farming value addition value-addition vanilla vegetables water management weeds West Africa wheat World Bank WTO yam Zambia Zanzibar zero tillage Zimbabwe

  © 2007 Africa News Network design by Ourblogtemplates.com

Back to TOP