(Agence Ecofin) – Faced with food insecurity that affects 239 million people on the African continent, Phatisa Food Fund 2 which hoped to raise $ 300 million, finally obtained half of this funding. The sum will be invested in the food value chain on the continent.
South African private equity firm Phatisa has completed the final $ 143 million closing of its third Phatisa Food Fund 2 (PFF 2) focused on food in Africa.
“Development impact, without deviating from sound commercial principles, is at the heart of Phatisa’s investment approach.” @CDCgroup @norfund_ @Finnfund @FinDev_Canada #BIO #PrivateEquity #Africa #Invest4Impact https://t.co/d8LphYF9Nh
– Phatisa (@PhatisaGroup) February 4, 2021
This amount is very far from the $ 300 million target size that the Fund was aiming for when it was set up. A consortium of five development finance institutions participated in this operation by committing $ 82 million to the fund. These are CDC Group, Norfund, Finnfund, FinDev Canada and BIO.
“Our support for Phatisa Food Fund 2 will help address some of the most significant challenges facing Africa today. Food insecurity is a major problem on the continent, made worse by covid-19 which threatens to put 23 million more African citizens into extreme poverty. Phatisa has demonstrated her ability to help smallholder farmers and businesses ”, said Paulo Martelli, specialist in charge of structuring transactions in Latin America, the West Indies and Africa for FinDev Canada, which is taking part in the operation.
This final closing follows a first fundraising carried out in 2018 for the benefit of PFF 2. The vehicle that succeeds the African Agriculture Fund (AAF) targets the African continent where approximately 239 million people are affected by food insecurity. . A situation that could worsen with the prolongation of the health crisis and its repercussions on businesses and households.
Thanks to this fundraising, PFF 2 will invest in businesses in the food value chain and reach more than 90,000 smallholder farmers and micro-entrepreneurs. Its action will help strengthen the food supply and local production while reducing the importation of food products into Africa.