By Lynda Kiernan, Global AgInvesting Media

Namibian private equity firm Eos Capital has launched its third fund, the Euphrates Agriculture Fund, with the goal of raising N$500 million (US$33.5 million) by March 2021. 

The challenges being faced by the Namibian agricultural sector (one being that right now only Agribank is committing large-scale investments in agriculture in the country through debt financing) drove the decision to raise the fund, which aims to foster an “Agricultural Renaissance” in the country by facilitating the industrialization of production, delivering on social impact, and by generating returns in the medium term for investors. 

Currently fundraising, Eos has set a goal of $33.5 million by March 2021 to build a portfolio of stable, high-quality Namibian agricultural assets that will contribute to the economic development of the country, which remains broadly rain-dependent.

Despite this, agriculture is one of only three sectors in Namibia that posted growth for Q2 2020, according to the Namibian Statistics Agency.

Agriculture and forestry, information and communication, and health sectors recorded growth rates of 47.2 percent, 11.0 percent, and 6.0 percent, respectively, noted the quarterly report, that qualified that growth for the agriculture and forestry sector is the result of a bumper cereal crop resulting after sufficient rainfall.

Senior associate with Eos and agriculture specialist Frederico van Wyk noted 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. 

Under its mandate the special vehicle 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.

“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,” said 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,” added Maske. “Euphrates will serve as a catalyst to industrialization by pursuing quality assets at attractive prices, seeking to maximize returns over the long term.”

 

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.