Yield Uganda Investment Fund (Yield Fund), managed by Pearl Capital Partners, has announced a USD 2.5 Mn investment in Pura Organic Agro Tech Ltd (Pura), structured as both straight equity and patient loans. The investment is the Fund’s ninth investment in Uganda’s agriculture sector, but it is the first significant value-added investment in the cassava sector.
Yield Fund is an agri-business impact fund, set up by the European Union (EU), through the International Fund for Agricultural Development (IFAD) and the National Social Security Fund (NSSF), with follow-on investments from the Open Society Foundation (OSF) and FCA Investments in June 2019. The Fund offers innovative financial products such as equity, semi-equity, and debt funding to small- and medium-sized enterprises (SMEs), potentially generating strong financial returns and significant social impact.
Pura has developed a nucleus farm, expanding the acreage cover of its cassava portfolio, producing cassava cuttings for smallholder farmers, and is now evolving into cassava processing and value addition.