PensionDanmark Invests DKK320 million in African Farmland

PensionDanmark is doubling its commitments in Africa with a series of investments in agricultural land in Tanzania, Zambia and Uganda.

Earlier this year the fund invested DKK52 million (EUR7 million) in renewable energy in East Africa and in 2010 invested DKK200 million (EUR27 million) in publicly listed companies in Central Africa.
PensionDanmark has now made a new investment commitment of DKK320 million (EUR 43 million) to the fund Silverland, which will invest in African farmland. The combination of a high yield per acre, two harvest seasons a year and land prices, which are significantly lower than in the US and Europe, offers the prospect of an attractive return on investment.
"We have an increasing focus on investments in Central Africa, which is on track to become one of the next major growth regions of the world,” says Senior Portfolio Manager Anders Bang, PensionDanmark.
“This past year we have made investments and given commitments of about DKK600 million (EUR80 million) within renewable energy, publicly listed companies and is now farmland in Africa. They all have the potential for good returns," says Senior Portfolio Manager Anders Bang, PensionDanmark.
Silverland will focus on agricultural production in Tanzania, Zambia, Malawi, Uganda and Mozambique. The total investment commitments to the fund are expected to be DKK1.6 billion (EUR215 million).
"The investments in Africa will be socially responsible and support a sustainable local development. Therefore, the fund will work closely with local farmers about training, seeds and access to markets, so they too will gain from the investment, "says Bang.
Pension Denmark already has invested DKK200 million (EUR27 million) in publicly traded companies in 10 countries in Central Africa through the fund DUET and DKK 52 million (EUR 7 million) in DI Frontier Market Energy & Carbon Fund, which invests in renewable energy projects in East Africa.