Buy into Africa
- Investor Chronicle
- 15 August 2008
Cru, a small specialist fund management firm, recently launched a Malawi-based fund called Africa Invest. The fund has made an initial investment of £2m in 2,000 hectares of land that’s producing paprika for western supermarkets. With land prices starting at £800 per hectare (compared to £10,000 in the UK) it’s relatively easy to amass large farms that can be upgraded with new technology, mechanisation and better production methods. According to Cru, annual returns on capital should exceed 30 to 40 per cent.