Foundations’ $25m to boost agricultural performance in drought-hit east AfricaNovember 2011
A group of US ‘impact investors’ have pledged $25m to develop sustainable agribusinesses in east Africa in response to drought and famine in the region.
Foundations including JP Morgan and Rockefeller, along with the USAid governmental organisation, have invested the money with Pearl Capital Partners (PCP), a specialised Ugandan agricultural investment fund manager based to ‘boost the productivity and profitability of Africa’s undercapitalised agriculture sector’.
PCP will invest the money into a new fund, the African Agricultural Capital Fund, to help around 20 businesses over the next five years, with the aim of impacting the lives of 250,000 households. It will seek to develop home-grown expertise in the area rather than relying on foreign services.
JP Morgan head of corporate responsibility Peter Scher said: “This transaction exemplifies an innovative approach to impact investing that we hope will be a model for the future. JP Morgan is thrilled to work with our private and public sector partners to make this landmark effort a reality.”
The fund is also supported by the Bill & Melinda Gates Foundation and the Gatsby Charitable Foundation.
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