• Phatisa reaches $86 million first close for food fund
• Backed by BII, IFC, and other development finance institutions
• Fund targets Africa’s food value chain, excluding primary farming

Phatisa, a Mauritius-based private equity fund manager, said on Monday it had reached a first close of $86 million for its third food and agriculture fund.

The fund, Phatisa Food Fund 3 (PFF3), is targeting up to $300 million in commitments over the next 12 months from institutional investors and development finance institutions.

The first close included backing from several development finance institutions, among them British International Investment (BII), FinDev Canada, Norfund, Swedfund and the International Finance Corporation (IFC).

PFF3 will invest in companies across Africa’s food value chain, excluding primary agricultural production. Its focus will be on agricultural inputs such as seeds, crop protection products, fertilisers and agricultural technologies, as well as downstream segments including processing, cold storage, logistics, distribution and retail. The fund will also support services linked to food production and marketing.

Alongside the fund’s launch, Phatisa signed its first investment agreement with Zaad Group, a platform specialising in seeds and crop protection products in Africa.

Phatisa said Africa remains heavily reliant on food imports, with annual import bills estimated at $43 billion and projected to reach $110 billion by 2030. Post-harvest losses, supply chain inefficiencies and limited access to finance for small and medium-sized enterprises continue to undermine the productivity and resilience of the continent’s food systems. The fund aims to help address these structural constraints.

PFF3 follows two earlier funds managed by Phatisa. The first is nearing the end of its investment cycle, while the second has already returned around 40% of invested capital following recent exits and retains a diversified portfolio that provides an operational and financial base for new investments.

Chamberline Moko