Phatisa Food Fund 2
BIO has invested USD 7 M in equity in the Phatisa Food Fund 2 LLC, a Private Equity fund with a focus on the African food & agribusiness value chain.
Amount
€ 5,767,300.00
Type of investment
Equity
Development impacts
- Local economic growth
- Private sector consolidation/innovation
- Food security & rural development
- Gender
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
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.
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.
We want to increase food security in Africa by supporting sustainable food production in Africa for local markets and by helping African food value chains and companies grow
Carole Maman, Chief Investment Officer at BIO
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% in the companies it finances, while increasing outputs, yields and incomes.
Development impacts
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Local economic growth
The Fund mobilises long term capital flows into Africa to unlock business growth in (SME) companies active in agri-business and food value chain and are expected to sustain 10,000 permanent jobs and create 2,000 quality jobs and contribute to tax revenues.
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Private sector consolidation/innovation
The Fund’s investees are/will be active in a sector that is being underserved by conventional finance providers. The firm is supported by in-house industry specialists with a track record of driving value in food and beverages, FMCG, route-to-market, mechanization and inputs.
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Food security & rural development
The Fund’s target is to feed Africa and increase the supply of nutritious food for domestic markets by focusing on business growth and strategies to improving yield. PFF2 invests in inclusive models across the African continent- businesses that link smallholder farmers, micro-entrepreneurs and SMEs to the agribusiness & food value chain in meaningful ways that result in an increase of income for these groups.
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Gender
PFF2 targets investees to have a gender policy in place and to increase women employment.
Phatisa Foundation, a small grant fund, supports social programmes which benefit women. For example, the majority of beneficiaries in the Child Nurse Practice Development initiative in Malawi are women.
Made possible through this investment
FES
Malawi, Zambia
Holistic, cost-effective agriculture solutions are pivotal to sustain and increase yields and minimise the risk of crop failure for both smallholders and commercial farms
Rolfes Group
South Africa
Read impact and news about this project
News
Phatisa Food Fund 2 reaches $143 million final close from DFI commitments
04-02-2021
CDC Group, Norfund, Finnfund, FinDev Canada and BIO jointly commit $82 million to Phatisa’s second food fund, a Sub-Saharan African fund aiming to create over 2,000 jobs in food and agriculture and to increase agricultural output by 3m tonnes.
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