African based food fund reaches $143 million final close from DFI commitments

A group of leading development finance institutions and impact investors have announced an $82 million joint commitment to Phatisa Food Fund 2 (PFF 2).

PFF 2 will invest across the African food value chain, considering investments in mechanisation, inputs, poultry and meat production, food processing and manufacturing, logistics, aggregation and distribution across Sub-Saharan Africa.

The investment will strengthen and increase food supply, local production and distribution across the region.

“We are pleased to welcome this multinational group of investors to Phatisa Food Fund 2, a fund focused on increasing investment in the undercapitalised African agribusiness and food value chain,” said Stuart Bradley, Managing Partner. 

A consortium of investors, consisting of CDC, Norfund, Finnfund, FinDev Canada, and BIO committed to the Fund’s final close, $30m, $20m, $15m, $10m and $7m, respectively.

The Fund has reached a final close of $143m, bringing DFIs and commercial investors together to boost the supply of quality food in Sub-Saharan Africa – where an estimated 239 million people are affected by food insecurity.

The Fund, via its investment in companies in the food value chain, targets over 90,000 small-holder farmers and micro-entrepreneurs and aims to create over 2,000 permanent jobs and sustain another 10,000 jobs.

The investment follows the success of Phatisa's African Agriculture Fund (AAF), which has created more than 1,800 jobs and benefitted 86,000 farmers operating in over 20 markets across the continent.

Building on AAF, Phatisa Food Fund 2 will enable small-holder farmers and micro-entrepreneurs to develop their skills, broadening access to markets and economic opportunities.

The new fund will also address access to, and affordability of products among farmers and promote smart agricultural methods - enhancing crop resilience, reducing food loss and waste by 50 per cent in the companies it finances, while increasing outputs, yields and incomes.

The investment contributes to UN Sustainable Development Goals 1 (no poverty), 2 (zero hunger), 8 (decent work and economic growth), 5 (gender equality), 12 (responsible consumption and production) and 13 (climate action).