PCP has the pleasure to announce the first closing of our 4th Impact Fund, the Yield Uganda Investment Fund, devoted to small and growing agribusinesses with a total committed amount of €12m. The Fund is anchored by €10m from the European Union (EU) through the International Fund for Agricultural Development (IFAD) and €2m committed by the National Social Security Fund Uganda (NSSF).
PCP will make investments in the range of €250,000 to €2 million.
The Fund which shall target agriculture-related businesses across all value chains, with clear competitive advantage and ambitious local management, will benefit the economy through improving rural household livelihoods, improving access to markets, creating jobs and employment, promoting and ensuring food security, generating income and foreign exchange and new export opportunities, all fundamentally contributing to the country’s economic growth and goal to eradicate poverty.
Yield’s investment strategy is to maximize the long-term profitability of its investee companies and to deliver considerable impact to their small holder partners, subject to the constraints of appropriate risk management, while observing internationally-recognized social, environmental and governance standards.
The Fund second closing is expected end 2017, gathering further like-minded private investors. Deloitte Uganda together with PCP will continue the fundraising process to achieve the target Fund size of €25 million.
Yield Fund will be boosted by a €3 million Business Development Support (BDS) facility, provided by the EU as a grant and to be implemented by IFAD, solely for the benefit of the Yield’s investee businesses. High-quality BDS will be critically important when modernizing and expanding Yield Fund’s investee companies to make them more effective, growth-oriented and profitable. It is with this in mind that an integral and complementary part of the Fund’s investment process will be to assess their needs and to offer BDS activities on a cost-shared basis between the facility and the investee companies. Typical areas of BDS support will include corporate governance, project management, strategy support, accounting, budgeting, auditing and tax compliance, innovation and technology transfer, human resource management, marketing studies, the adoption of international product quality and safety standards.