Thursday, 25 September 2008

A new private equity fund plans to invest in agricultural processing in Africa

A new private equity fund plans to invest in agricultural processing in Africa to cash in on booming food prices with backing from a foundation linked to the world's biggest cereal maker, Kellogg Co.

Agri-Vie is initially focusing on South Africa and neighboring states; on Kenya, Tanzania and Uganda in East Africa; and Ghana and Nigeria in West Africa -- although the fund hopes to move into French-speaking Africa later. Potential projects in West Africa included the tropical crop cassava, grown for its energy-rich roots and protein-rich leaves, and pineapple juice manufacturing. 

Agri-Vie has raised around half its target capital of $100 million, and hopes to announce its first investments in the coming months. The fund has a projected 10-year lifespan. Agri-Vie's investors include state-owned entities like South Africa's Development Bank of Southern Africa and Industrial Development Corp, and private entities like the W.K. Kellogg Foundation, started in 1930 by the breakfast cereal pioneer.

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