Phatisa Food Fund 3 has completed a first close of US$86 million, marking its inaugural investment in Zaad Group, a leading African platform in seeds and crop protection, to enhance food security and agricultural productivity across the continent.

Information on the target

Phatisa Food Fund 3 (“PFF 3” or “the Fund”) has successfully achieved a first close of US$86 million, backed by a consortium of prominent development finance institutions and impact investors. This initial capital raise marks a significant milestone for the Fund, showcasing robust investor confidence in Phatisa’s strategic approach, proven track record, and established presence across the African continent. The Fund's primary focus is on investing in scalable businesses within Africa’s food value chain, particularly in agri-inputs and downstream activities.

The Fund has already signed legal agreements for its inaugural investment in Zaad Group, a leading independent platform specializing in seeds and crop protection in Africa. This acquisition underscores PFF 3’s commitment to enhancing food security and productivity through critical agricultural inputs, thereby validating its investment strategy aimed at addressing the continent's pressing food challenges.

Industry overview in the target’s specific country

Africa's food sector is undergoing transformative changes driven by significant long-term demand factors. The continent is home to the youngest and fastest-growing population globally, with projections indicating that by 2050, one in four individuals will reside in Africa. Additionally, rapid urbanization is anticipated, with over half of the popula