Phatisa Food Fund 2 has reached a $143 million final close from a group of leading development finance institutions (DFIs) and impact investors. The move seeks to boost the supply of quality food in Sub-Saharan Africa, where it is estimated that food insecurity affects 239 million people.
Investors who took part in the funding include CDC Group, Norfund, Finnfund, FinDev Canada, and BIO, committing $30 million, $20 million, $15 million, $10 million and $7 million, respectively.
Phatisa Food Fund will use the investment to invest across the African food value chain, especially in food processing and manufacturing, mechanisation, inputs, poultry and meat production, logistics, aggregation and distribution across Sub-Saharan Africa. Furthermore, the investment will strengthen and increase food supply, local production and distribution across the region.
The Fund targets over 90,000 small-holder farmers and micro-entrepreneurs via its investment in companies in the food value chain, and aims to create over 2,000 permanent jobs, while sustaining another 10,000 jobs. The $143 million investment comes after Phatisa’s African Agriculture Fund (AAF) success, which created close to 1,800 jobs and benefitted 86,000 farmers who operate in over 20 markets across Africa.
Therefore, Phatisa Food Fund 2 will enable small-holder farmers and micro-entrepreneurs to develop their skills, thus increasing access to economic opportunities and markets. Additionally, the new fund will address access to, and affordability of products among farmers and promote smart agricultural methods – enhancing crop resilience, reducing food loss and waste by 50% in the companies it finances, while increasing outputs, yields and incomes.
Being a sector-focused private equity fund manager, Phatisa is a specialist investor within the African food value chain. The firm currently has three funds under management, totalling more than $400 million, focused on food and affordable housing.
See Also:
