Old Mutual invests in Nigerian growth

Nigeria's sovereign wealth fund and South African financial services firm Old Mutual have concluded and signed agreements to set up two funds to invest in real estate and agriculture in Nigeria.

According to Uche Orji, Nigeria Sovereign Investment Authority (NSIA) chief executive, both parties will commit $100 million initially for the real estate fund, along with a further $50 million for the agriculture fund. According to Old Mutual, the new funds will stay invested for up to 12 years, targeting returns of around 20%.

Access to capital and poor infrastructure are hindrances to the growth of Africa's most populated country, and the focus will thus be here initially, along with a focus on agriculture for export.