By Lynda Kiernan-Stone, Global AgInvesting Media
Namibian private equity firm Eos Capital has had a first close at $5.7 million in capital commitments for its Euphrates Agri Fund.
Founded in 2015, Eos Capital is a 100 percent Namibian owned, woman-led, ethically diverse fund manager with more than N$1 billion (US$62 million) in AUM across its three funds: Allegrow Fund, Namibian Infrastructure Development and Investment Fund, and Euphrates Agri Fund.
Citing the challenges being faced by the Namibian agriculture sector, particularly that the only current large-scale investor in agriculture in the country through debt financing is Agribank, Eos Capital announced the formation of the Euphrates Agri Fund in October 2020 with a goal of raising N$500 million (US$33.5 million) by March 2021.
With the capital being raised for this vehicle, Eos Capital stated that it intends to bring about a renaissance in Namibian agriculture by building out a portfolio of stable, high-quality agricultural assets and focusing on climate-adapted investments across the value chain that support the UN Sustainable Development Goals: no poverty, zero hunger, gender equality, fair work, and economic growth.
Under its mandate, the Euphrates Agri Fund will invest (through equity and quasi-equity deals) in unlisted companies focused on ag processing, distribution, logistics, commercial production, biomass, fertilizers, seeds, animal products, retail, and equipment. These investments will carry a focus on economic growth, job creation, and social benefits.
Agriculture is one of Namibia’s key sectors, according to the International Trade Administration, with the majority of the country’s people dependent either directly or indirectly on food production for their livelihood, and contributing just over 4 percent to the country’s GDP.
Two-thirds of the country’s agricultural production is tied to livestock, which contributed 3.5 percent to the country’s GDP in 2020, compared to 3 percent in 2019. Crop farming and forestry account for the remaining one-third of production.
Namibia is only the second African country after South Africa to meet the stringent conditions for importing beef to the U.S., and in March 2020, became the first and only African country to export beef to the U.S. market.
The country’s Ministry of Agriculture, Water, and Land Reform (MAWLR) has also forwarded two initiatives targeting the increase in local agricultural production: the Green Scheme, which is targeting the development of 27,000 hectares of irrigated production, and the National Horticulture Development Initiative (NHDI), which is designed to promote the marketing of fruit, vegetables, livestock fodder, and other horticultural products.
Senior associate with Eos and agriculture specialist Frederico van Wyk noted in October 2020 upon the fund’s launch that it’s the latent potential for growth that makes agriculture so attractive, and that this potential can be capitalized upon through backing technology and strategic capital commitment.
“This vision can be achieved in Namibia by creating a system for development between private and public sectors,” he said.
“Eos Capital’s mission is to contribute to the growth of the Namibian economy and the Agri fund will take us a step further on this mission,” added Nicole Maske, managing partner of Eos Capital. “It will be attractive to investors seeking diversification and investing into real assets that provide a hedge against inflation.”
“Agriculture is a diverse asset with a broad range of risk/return profiles and characteristics, offering options and diversification,” continued Maske. “Euphrates will serve as a catalyst to industrialization by pursuing quality assets at attractive prices, seeking to maximize returns over the long term.”
The capital secured through this first close will enable the fund to make its debut investments, with plans to deploy capital in agricultural services by the end of the year while fundraising continues.
And to guarantee that the Euphrates Agri Fund is well-guided through both objectives, Eos Capital has engaged local leaders in the agricultural space including Arnold Klein, CEO of Agra, Otto Shikongo, CEO of Debmarine Namibia, Joubert Smit, CEO of Tineal, and agricultural specialist Ryno van der Merwe as independent members of its Board of Directors and Investment Committee.
– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@