Key Takeaways
- Phatisa Food Fund 3 reached a US$86 million first close backed by leading DFIs and impact investors.
- The Fund signed its first investment to acquire Zaad Group, an agri-inputs platform operating across Africa.
- The Zaad transaction includes a capital injection to support acquisition of a majority stake in East Africa Seeds Group.
- Food Fund 3 targets scalable food value chain businesses combining commercial returns with measurable impact.
- The Fund has a hard cap target of US$300 million and plans rolling closes over the next 12 months.
Phatisa Food Fund 3 Achieves First Close at US$86 Million
Phatisa Food Fund 3 (PFF 3) has reached a US$86 million first close, with commitments from British International Investment (BII), FinDev Canada, Norfund, Swedfund, the IFC and Phatisa.
The first close marks a milestone for the pan-African fund, which focuses on investments across the food value chain. PFF 3 targets agri-inputs such as seeds, crop protection, fertiliser and agri-tech, as well as downstream activities including processing, storage, logistics and food distribution. The Fund will not invest in primary agriculture.
The Fund is targeting rolling closes over the next 12 months and has a hard cap of US$300 million.
Phatisa First Investment: Acquisition of Zaad Group
Simultaneously with the first close, PFF 3 signed legal agreements to acquire Zaad Group, a South Africa-based agribusiness investment holding company operating across the agricultural inputs value chain.
The transaction includes a capital injection to enable Zaad to acquire a majority interest in East Africa Seeds Group. Zaad operates complementary businesses in seed breeding, production and distribution of forage, field and vegetable seed, alongside crop protection solutions across the African continent.
Zaad’s research and development capabilities support seed breeding programs and Africa’s transition from open-pollinated varieties to climate- and disease-resilient hybrid varieties, aimed at improving yields and food security.
Imane El Alaoui-Grollemund, Partner at Phatisa, stated: “Zaad is a compelling example of the type of business we seek to back through Food Fund 3: deeply embedded in the food value chain, commercially robust, and delivering solutions that materially improve agricultural productivity and resilience. We are proud to make Zaad the first investment of the Fund.”
Antonie Jacobs, CEO of Zaad, added: “With Phatisa’s support, we look forward to accelerating our growth across Africa, investing further in innovation and research, and expanding access to hybrid, climate and disease resilient varieties that support better outcomes for farmers and food systems alike.”
Strategy Focused on Food Security and Resilience
PFF 3 builds on Phatisa’s prior food funds and aims to combine commercial discipline with measurable impact outcomes. The Fund’s strategy addresses structural constraints in African food systems, including limited adoption of yield-improving technologies and inefficient supply chains.
Stuart Bradley, Managing Partner at Phatisa, said: “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.”
Completion of the Zaad transaction remains subject to regulatory approvals and standard closing conditions.
