Private equity firms Bamboo Finance and Louis Dreyfus Holding — which have offices in Nairobi — have jointly launched a Sh5 billion fund for agribusiness investments in sub-Saharan Africa.
According to a statement released by Bamboo Finance, the cash is intended to benefit low-income communities involved in agriculture.
Louis Dreyfus, which also has offices in Johannesburg and Accra, is contributing Sh1 billion to the fund — dubbed NISABA — while the rest of the money is raised from various global investors. It was not clear how much will go to Kenya.
“Bamboo Finance, specialising in investing in business models that benefit low-income communities in developing economies and Louis Dreyfus Holding, [are] to launch and jointly manage NISABA, a $50 (Sh5 billion) million impact investment fund project,” said the statement.
The focus will be on small- and medium-sized agribusiness enterprises, which have difficulties accessing finance at reasonable costs.
Louis Dreyfus sees Africa’s population doubling to two billion people by 2050, thereby requiring huge investments in agricultural production.
NISABA will target a balanced portfolio of countries, activities and commodities, and will invest in financing gaps across the agribusiness value chain in growth markets.
SOURCE: BUSNISS DAILY