Old Mutual Investment Group (OMIG) is partnering with the Nigerian Sovereign Investment Authority (NSIA), Nigeria’s sovereign wealth fund, to invest $200 million in an agricultural investment fund. This announcement comes soon after OMIG raised its equity stake to 49% in UFF African Agri Investments, a leading agriculture investment group focused in Africa. With this increased commitment, the two companies are hoping to invest up to $500 million in African farmland over the next five years.

The UN states that the agricultural investment gap until 2030 is US$260 billion annually in the developing world. They go on to posit, “Africa, with only 7% of its 39 million hectares of arable land under irrigation has huge potential to alleviate poverty and unemployment.”

Diane Radley, OMIG CEO, believes the partnership and NSIA’s local knowledge and capacity will provide significant value to clients and the economy through long-term, sustainable investing. Her commitment and optimism towards developing the agricultural sector in Nigeria was corroborated by the Managing Director & CEO at NSIA, Uche Orji, who stated that “we believe that the [agriculture sector] offers considerable potential for economic growth in Nigeria. Our commitment in these sectors is underpinned by the economic imperatives of urbanization, population growth and the enhancement of liquidity for the sector.”

Each party will make commitments for an initial fund size of $50 million, targeting a total fund size of $200 million with both parties participating in deal origination and execution. The goal of this fund is to promote food security and rural development in Nigeria to capitalize on opportunities within the Nigerian agricultural industry.

In light of declining oil revenues, diversifying into agriculture and attracting investment has been a key goal of the Nigerian government. Earlier this year, Olam invested $150 million in an integrated feed and poultry complex, and Pecora Capital based out of the U.S. launched a $2 billion fund in Nigeria with a focus area in agriculture. In addition to raising its stake in UFF African Agri Investments, in 2015, Old Mutual Investment Group pledged to invest almost US$40M in agricultural properties in east and west Africa.

This fund is being launched in tandem with a $500 million fund for real estate in Nigeria.

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Tiffany Agard