African Farmland Investment
A major philosophy at GreenWorldis that we as investor always want to be on the right side of global macro trends. One trend we at GreenWorld have noticed is that large institutions are increasingly making farmland investment in Africa. As the graph below from the FAO demonstrates, 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.
Not surprisingly, large global institutions have noticed the huge potential of African agriculture, and African farmland has seen a particular surge of interest from Persian Gulf investors. Large private equity and hedge funds are also diversifying into African farmland in a race to take advantage of the investing opportunity involved with bringing additional African farmland into production.
Whilst the private equity funds generally have very large minimum investments starting at $5 million – $10 million, GreenWorld’s African farmland investment has a very low minimum investment requirement so that it is accessible by individual investors as well as institutions. This farmland investment offers our clients both high current income as well as the opportunity for long-term capital gains. It is a fine example of the advantages of farm land as an investment.
GreenWorld, along with our UK farmland partner, has purchased a 3,000 hectare plot of farmland in West Africa. The crop which is being planted and harvested is rice. The key highlights of GreenWorld’s rice farmland investment are as follows:
- Low minimum for the farmland investment of £2,250/approximately US$3,600 per acre. There are no ongoing maintenance costs or fees. Everything is fully transparent.
- Investors will actually own the direct leasehold title to the land.
- The rice farmland investment will pay an annual dividend to investors based on the sale of rice from the harvest. The targeted estimated annual dividend is 15% per annum. The first two yearly dividends have been 16.2% and 14.8 %.
- There are also possibilities for increases in the capital value of the land due to the low starting prices of African farmland, and the targeted estimated total return is 175% over approximately a 5 year period.
- This is also is one of the few socially responsible investmentsavailable in African farmland, as all of the workers are local employees; they are paid wages well above the average in Sierra Leone; and there is a local community investment program.
If you are a retail investor looking for a high yielding alternative investment which is uncorrelated to stocks, GreenWorld’s African farmland fund is well worth considering.
Please e-mail us at firstname.lastname@example.org to discuss this amazing opportunity further. You can also download a short overview of this investment by filling out the form below and if you are interested we would be pleased to discuss in more detail with you.