Cru Investment Management, the UK-based $800 million absolute return investment company said it will be targeting the UAE and the region by offering funds focused on commercial agriculture in Africa.

The company, which plans to offer its new Africa Agriculture Fund in the Middle East early next year said its move is a result of growing interest from Gulf countries looking at overseas agri-investments to bolster food security.

This fund will invest in commercial agriculture in Sub-Saharan Africa, with the aim of helping to alleviate poverty in the region, while not compromising returns for investors.

Cru, which has significant exposure in commercial agriculture in Malawi with over 2,500 hectares of land under its own control and another 4,000 hectares in outgrower schemes, said its fund would offer investors a unique opportunity to be part of a philanthropic gesture of helping the vulnerable communities of Africa ravaged by poverty as well as earn excellent ROI in the range of 30 to 40 per cent per annum.

Jon Maguire, chairman, cru Investment Management, said: 'Securing long-term food supplies is a crucial challenge for the World in general but also very relevant to the Gulf in the wake of a rising population and increasing food prices.

'Through the cru Fund we are opening a door of opportunity to partner with us in promoting agriculture in Africa which in turn will support and add value to the world wide food security initiatives coupled with proven benefits of maximising returns.

'Most importantly, our decision to make the new fund Shariah-compliant will mean that Gulf investors, well known for their philanthropic initiatives world over, would be participating in community initiatives to generate employment for the poor in Africa and enable them to help themselves out of poverty,' he said.

Cru Investment Management said it has already successfully piloted a scheme in Malawi and launched a fund called Africa Invest.

According to the company's estimates, the funds it has raised through its Africa Invest Fund and the Africa Invest Capital Protected Plan for Malawi has generated jobs for over 2,000 people, has helped 8,000 families take part in out grower schemes.

“Our commitment to poverty alleviation is absolute and fundamental to our business.  It was with this motive we went to Africa in the first place. Combined with this, the sustained ROI from these investments has also been excellent,' Maguire said.

The commercial agriculture endeavours of cru is backed by a sound and seamless supply chain networking with principal buyers across Europe and the Far East avoiding the involvement of middlemen, in turn increasing profits from the produce.

As part of its endeavour to optimise profit, cru is also aiming at establishing food processing plants next to the farms and put in irrigation systems in order to increase crop yields.

This strategy captures more of the value chain and allows farmers to see much of the profits from their labour than they otherwise would.

Maguire said this is the first time cru is targeting to raise funds from any Arab country and has chosen the UAE as a springboard for its entry into the region.

“We are confident that the cru Fund will generate enthusiastic interest in the UAE. The uniqueness in participating in our Fund is not just generating returns alone, but to be part of a larger cause of contributing to the society and it is not something conventional financial institutions generally do.' - TradeArabia News Service