Uganda: Pearl Capital Partners launches new agri fund

Uganda-based fund manager Pearl Capital Partners (PCP) has launched a UGX23.9 billion (€6 million) fund with support from The Embassy of the Kingdom of the Netherlands (EKN).

The Dairy-Horticulture Credit Limited Fund (DHCL Fund), managed by PCP, is a UGX23.9 billion credit facility for wholesale lending to SACCOs, other cooperatives and SMEs working with and supporting smallholder farmers in the dairy and horticulture value chains. The DHCL Fund has two separate credit lines – the Uganda Dairy Credit Facility (UDCF) and Horticulture Credit Line – each capitalised with UGX11.9 billion (€3 million).

The credit fund will extend medium-term loans to SACCOs and cooperatives in Uganda for onward lending to the dairy and horticulture smallholder farmers.

Edward Isingoma Matsiko, a managing partner at PCP, said: “Securing EKN’s support is a significant milestone and an endorsement of PCP’s strategy regarding solving the access to finance issues for the less privileged smallholder farmers in Uganda’s key agri sectors. [The DHCL Fund] presents an opportunity for small-scale farmers to improve production and productivity for economic growth in the two subsectors. Uganda has a favourable climate with evenly distributed rainfall and a moderate climate that allows dairy, tropical fruits, and vegetables to flourish. While the natural conditions are favourable, the potential of the two subsectors has not been maximised. Some of the key limiting factors, such as low productivity, quality, food safety, and access to relevant lines of credit, will be addressed by this fund.”

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