Friday, October 5, 2012

Investing In African Farmland

Turning African farmland over to big business

... by creating win-win situation by having good jobs for local people - this is critical, local support means everything for the long-term success of the project.

A major philosophy at Firstconinvest is that we as Hedge Fund always want to be on the right side of global macro trends. One trend we at Firstconinvest have noticed is that large institutions are increasingly making farmland investment in Africa. The scope for bringing additional arable land into actual production in Africa is huge, and indeed, it is estimated that the continent holds approximately 60% of the world's remaining uncultivated land that is suitable for farming. It is not an exaggeration to say that looking at global agriculture from a long-term perspective it seems that Africa has a huge opportunity to feed both itself and the world in the coming decades.

Over 148 million acres of farmland in Africa have been purchased by Western hedge funds in the last three years and we decided investing in this market too. We have observed the emerging market for some years before we agreed to invest in this market. We have studied expertises on rainy seasons, ground acquisition and political infrastructure until we made ​​this decision.

The contracts clauses allow foreign companies to keep exporting as much as 80 percent of what is grown on the acquired land, even if the host country is experiencing food shortages.

With our chosen guidelines and intentions, our investment in Africa's farmland is both ethical and profitable. The targeted estimated annual dividend is 25 to 40 percent per annum. Read more

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