Training
Home
African
Agricultural Capital—a new investment company for agriculture
F.L. Cockcroft
African
Agricultural Capital (AAC) is being established as an investment company
with a specific focus on the agricultural sector, broadly defined. Its
objective is to facilitate development of small and medium-sized businesses
that serve the agricultural community in eastern Africa. The selected
businesses will be the interface between smallholder farmers, providing them
with inputs such as seeds and fertilizer, and purchasers and processors of
outputs for local, regional and international markets. They will typically
have grown from a small base, and their products, such as seeds, may owe
their development to national or international research centres, or to
universities. AAC will be a provider of both equity and debt finance and
will expect to be an investor in a particular company for a number of years;
in this role it will also provide or arrange for hands-on advice where that
is likely to increase the viability of the client company. It has been
registered in Uganda and has been capitalized at USD 7 million by The
Rockefeller Foundation, the Gatsby Charitable Foundation of the UK, and
Incofin of Belgium. Its board contains expertise from both within and
outside the region. It is expected to commence operation not later than June
2005.