Phatisa, an African private equity fund manager, is raising its third food fund, with a target of $300m and having secured capital commitments from a number of aligned development finance institutions for a first close in early 2026, Africa Global Funds can reveal.

“We believe this is a compelling time to gain exposure to Africa’s rapidly evolving food sector. The combination of rapid population growth, market inefficiencies, information asymmetries, relative scarcity of risk capital despite the need for steep improvements in yields and application of technology and know-how, presents many companies that are well-positioned for rapid growth,” Stuart Bradley, Managing Partner, Phatisa, said.

“They require well-structured risk capital underpinned by deep engagement from an aligned investor, with strong networks across and beyond the continent. Furthermore, incorporated into their expansion strategies must be robust climate-change adaptation and resilience measures. Corporate professionalisation, introduction of new skills, best practices and AI are also critical to their future success,” he told Africa Global Funds.

Phatisa focuses on the food value chain: agri-inputs (seeds, crop protection, fertiliser and agri-tech) and downstream activities (processing, food production, cold chain, storage and logistics, food distribution (retail) and services). Phatisa does not invest in primary agriculture.

According to Bradley, Impact is at the core of Phatisa’s investment strategy.

“Phatisa’s focus is to enhance Africa’s agribusiness and food value-chain sustainability via climate- focused investment,” he said.

By embedding Environmental, Social, and Governance (ESG) principles into every investment, Phatiasa has ensured that impact objectives are pursued alongside financial performance.

To date, Phatisa investees have contributed to over 5 million tonnes of food production/ food-related products, employed over 19,000 people, supported more than 120,000 smallholder farmers, helped reduce food waste and implemented circular-economy initiatives. 

Phatisa incorporates farmers in agriculture value chains equitably and sustainably. Phatisa supports investees to develop Paris-aligned decarbonisation strategies, targeting net zero by 2050 or earlier. 

“We align to TCFD, TNFD, OPIM (overall performance score of 90% at last verification), iCI, PRI and ILO, amongst others,” Bradley said.

Like its predecessor, Fund 3 will target 2X certification with aligned data-collection mechanisms. 

“Phatisa will raise a third technical assistance facility, building on the success of the prior two facilities in delivering additional impact around an investee – supply chain, customers, smallholders, rural communities and climate,” Bradley said.

Founded in 2005, Phatisa is an African private equity fund manager headquartered in Mauritius and has offices in Johannesburg, Nairobi and Lusaka. 

The firm has invested over $380m in two Funds and made 16 investments in the agribusiness and food value chain in over 20 countries across the continent, and has achieved eight exits, with another two in progress.

Phatisa is currently investing Phatisa Food Fund 2 - targeting the African food value chain, with the objective of positively impacting food security in the sub-Saharan region. Food Fund 2 builds on the successes, learnings & investment approaches of their Food Fund 1 and Housing Fund - both of which are fully invested and partially realised.

“Looking forward, we remain committed to responsible finance for development and continued success, which for us means more than just the bottom line. We are a commercial impact investor: we generate returns for our investors and we deliver shared value,” Bradley concluded.