In recent years, investment in private sector agriculture in East Africa has been very limited, despite the fact that East Africa's agriculture sector has many entrepreneurs with good ideas for building successful businesses.

A lack of access to finance and technical assistance has meant that many businesses have been unable to expand. This in turn has resulted in a failure by the private sector to adopt improved technologies, products and services to the agriculture sector, which acts as a key constraint on rural job creation, development and food security.

In response to the absence of an investment facility which focuses on the development of private initiative in the agriculture sector in East Africa, the Rockefeller Foundation, the Gatsby Charitable Foundation and Volksvermogen NV have established African Agricultural Capital (AAC), a venture capital investment fund specifically created to invest in small and medium-sized agriculture-related businesses in East Africa.

AAC is managed by PCP Uganda, a wholly-owned subsidiary of Pearl Capital Partners, a Mauritius based investment management business.

1. To earn a minimum gross return of 12% per annum on funds invested;
2. To mobilize increased investment capital of at least an additional $5 million into the East African agricultural sector through partnerships with other investors; and
3. For our investees to reach, by 30 June 2011, at least 150,000 smallholder households in East Africa with an income benefit per household of at least $100 per annum.