Phatisa has acquired minority stakes in food and agriculture-related companies to strengthen Africa’s food resilience for more than 20 years. The South African private equity firm’s third food fund has reached an $86 million first close toward its $300 million target, with support from British International Investment, Swedfund, the International Finance Corp., and previous investors FinDev Canada and Norfund.
“Competitive food value chains are critical to job creation and economic development in Africa,” said Norfund’s Pindie Nyandoro.
Phatisa’s earlier fund predecessor has deployed nearly half of the $143 million it had raised from development financiers, and has returned nearly 40% of invested capital, after selling stakes in poultry-focused vaccine maker Deltamune and food ingredients and agrochemicals company Rolfes Holdings.
Agri acquisition
Alongside the raise, Phatisa’s new fund acquired Zaad Group, a Cape Town-based distributor of seeds and agrochemicals. Phatisa joined the 1.4 billion rand ($87 million) acquisition as part of a consortium that included the Industrial Development Corp., the Public Investment Corp. and Women Investment Portfolio Holdings, a Black women-owned investment firm in Johannesburg.
Phatisa has made around 20 investments in 17 African countries. Its second fund backed eight companies including Farming and Engineering Services, which offers equipment, agricultural contracting and soil and water testing services in Malawi, Zambia and Tanzania, and coffee chains Artcaffé and Java House.
The firm also invests in affordable housing solutions to meet demand from a rapidly urbanizing population.