Phatisa Food Fund 3 reaches US$86 million first close and signs its first investment

·     US$86 million first close backed by global DFIs

·     First investment signed to acquire Zaad Group, a critical agri-inputs platform

·     Commercial discipline with purpose, delivering returns and measurable impact

·     More than capital, combining investment, expertise and long-term value creation

9 February 2026 – Phatisa Food Fund 3 (“PFF 3” or “the Fund”) has reached an US$86 million first close, with commitments from a group of leading development finance institutions and impact investors – British International Investment (BII), FinDev Canada, Norfund, Swedfund, the IFC and Phatisa. The first close represents a significant milestone for the Fund and reflects strong investor confidence in Phatisa’s strategy, track record and on-the-ground presence across Africa.

Building on the strategy and performance of its predecessor funds, PFF 3 will invest across Africa’s food value chain, targeting scalable businesses that combine strong commercial fundamentals with measurable impact.  The Fund focuses on agri-inputs (including seeds, crop protection, fertiliser and agri-tech) and downstream activities such as processing, food production, cold chain, storage, logistics, food distribution and retail as well as related services. The Fund will not invest in primary agriculture.

First investment signed, validating the Fund Strategy

Simultaneously with the first close, the Fund has signed legal agreements for its first investment, to acquire Zaad Group, one of Africa’s leading independent seeds and crop protection platforms, alongside management, WIPHold, the Public Investment Corporation and the Industrial Development Corporation.

The Zaad investment provides early validation of PFF 3’s investment strategy, targeting critical inputs at the foundation of food security, productivity and climate resilience with the transition from open pollinated to hybrid seeds, across rapidly growing African markets.

A compelling opportunity across Africa’s food systems

Africa’s food sector is being shaped by powerful long-term demand drivers. The continent has the youngest and fastest-growing population globally, by 2050 one in four people will live in Africa, and it is urbanising rapidly, with more than half of its population projected to live in cities by 2035. At the same time, Africa remains significantly reliant on food imports, with US$43 billion spent annually, forecast to reach US$110 billion by 2030, providing rapid growth opportunities through import substitution.

Meeting rising food demand requires sustained investment to address structural constraints, including limited adoption of yield-improving technologies, high levels of food loss and waste, and inefficient supply chains. Through its investments across the food value chain, Phatisa seeks to back businesses that improve productivity, resilience and affordability, while supporting inclusive economic growth. 

PFF 3 momentum and fundraising outlook

PPF 3 builds on Phatisa’s established track record. Phatisa’s Fund 1 is nearing completion, and Food Fund 2 has already returned approximately 40% of invested capital following two recent exits, while maintaining a diversified remaining portfolio including Artcaffé, FES, IFS, Java House, Lona Group and MHL International.

The Fund is commercially disciplined and impact-aligned, with a strong climate focus and a clear ambition to achieve Gender 2X certification, building on the success of its predecessor fund.

PFF 3 is targeting rolling closes over the next 12 months and is actively engaging with a robust pipeline of prospective investors, with a hard cap of US$300 million.

Roman Frenkel, Director and Head of Food, Agriculture and Natural Capital at British International Investment (BII), said:

“Africa’s food systems need investment that strengthens resilience and productivity across the value chain. We are delighted to renew our commitment through Phatisa Food Fund 3, building on our positive experience in Fund 2, and to support a commercially driven strategy that advances climate outcomes and inclusive growth.”

Stuart Bradley, Managing Partner, Phatisa, said:

“Investing successfully across Africa’s food value chain requires deep local experience, strong partnerships and disciplined execution. Food Fund 3 builds on over 15 years of sector focus and reflects our ability to originate proprietary opportunities, back high-quality management teams and build resilient, representative businesses that deliver both returns and impact.”

Paulo Martelli, VP and Chief Investment Officer, FinDev Canada said:

“We are thrilled to partner with Phatisa, a long-standing leader in the African agribusiness. FinDev Canada recognises the importance of the food value chain, and the critical role it plays in advancing food security, climate action, and gender equality. Through our continued partnership, we can strengthen inclusive economic growth, while expanding our agribusiness equity portfolio through a pan-African platform.”  

Pindie Nyandoro, Regional Director, Southern Africa, Norfund commented: 

“Competitive food value chains are critical to job creation and economic development in Africa. Norfund is pleased to continue to support Phatisa through Fund 3 and work with a manager that can originate, structure and actively build businesses across key segments of the food system.”

Sebastian Süllmann, Investment Manager, Food Systems, Swedfund, said:

“Swedfund is pleased to join Phatisa Food Fund 3 as a new investor. Strengthening sustainable food systems is central to our mandate, and this Fund’s focus on agri-inputs and downstream food infrastructure can contribute to improved food security, reduced losses and stronger resilience—while supporting the growth of competitive African companies.”

Farid Fezoua, Global Director, Private Equity and Venture Capital, IFC added:

“Growing Africa’s food and agribusiness sector requires long-term capital and strong partners who can help companies scale and compete. The World Bank Group’s Agri Connect initiative reflects our commitment to developing the continent’s agribusiness ecosystem, supporting market growth, and mobilizing capital. IFC is supporting this first close to help catalyze additional investment from both development and commercial investors, driving growth in an attractive and high-potential market.”