Annual Report
Annual Report & Financial
Statements for Year Ended
30th June 2009.
Find the full report here
AAC's Vision
To improve the livelihoods of small-holder farmers in East Africa
AAC's Mission
To be a leading agribusiness-focused investment fund in Africa that delivers positive financial returns to its investors, supports its investees through the provision of affordable and flexible capital, and has a high social and development impact on smallholder farmers and rural economies, thereby encouraging greater investment in the agriculture sector.
| African Agricultural Capital completes exit of Earthoil Kenya |
| Tuesday, 15 September 2009 13:26 |
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African Agricultural Capital (AAC), the first agribusiness investment fund dedicated to providing affordable and flexible capital to agriculture-related Small and Medium-sized Enterprises in East Africa, announces the exit of its portfolio company Earthoil Kenya Ltd, through the retirement of its quasi-equity investment facility, providing an overall annualised return on AAC’s investment of 9%. Earthoil Kenya is a producer, marketer and exporter of speciality cold-pressed seed oils. AAC’s made its initial investment in Earthoil in October 2006. As a result of our investment Earthoil embarked on a growth and upgrade strategy. Through AAC’s investment period, Earthoil acquired improved cold pressing equipment and financed a substantial increase in working capital requirements. In addition, AAC’s investment in Earthoil has yielded a high social and developmental return through a substantial increase in the value of oil seed purchases from more than 8,000 smallholder farmers in Kenya and Uganda. Commenting from AAC’s offices in Kampala, AAC’s Managing Director, Tom Adlam said “This successful exit is in line with AAC’s objectives of generating positive financial and social returns from its investments. Earthoil has grown substantially over the period of our investment and, in particular, has created export markets for smallholder-grown macadamia and moringa oil from East Africa”. This transaction was made possible by Treatt UK Plc’s acquisition of Earthoil. Treatt plc, one of the world’s leading independent ingredient suppliers to the flavour and fragrance industries, first acquired 50% of Earthoil in February 2007. In September 2008 Treatt took full control of Earthoil by acquiring the remaining 50%. Tom Adlam added “It is also encouraging that a substantial and highly reputable international business like Treatt is now investing for growth in East Africa.” |