Backers of this first close include several major development finance institutions: British International Investment, FinDev Canada, Norfund, Swedfund, the International Finance Corporation (IFC), and Phatisa itself.

The fund’s strategy builds on lessons and successes from Phatisa’s earlier food-focused funds.

Rather than investing in basic farming, Food Fund 3 is directed at businesses operating along the food value chain, from input providers and agricultural technology firms to companies involved in processing, storage, logistics, distribution and retail.

This approach aims to back companies that not only have solid commercial potential but also contribute to improved food systems and food security in sub-Saharan Africa.

At the same time as announcing the first close, Phatisa revealed its first planned investment from this new fund: an acquisition of Zaad Group, a pan-African seed and crop protection business.

The transaction is being carried out in partnership with Zaad’s management team and a consortium of investors that includes South Africa’s WIPHold, the Public Investment Corporation, and the Industrial Development Corporation.

The deal underscores investor confidence in the critical role of quality seeds and crop protection products in boosting agricultural productivity across the continent.

Phatisa’s leadership says the fund is now preparing for additional closings over the coming year, with an ultimate target of $300 million in total capital raised.

According to Managing Partner Stuart Bradley, the firm’s long-standing focus on Africa’s food sector, deep local networks, and disciplined investment approach are key to identifying opportunities that deliver both financial returns and lasting development impact.

Fund managers and investors in PFF 3 expect it to help bridge gaps in private equity capital for African agribusiness, supporting more resilient and efficient food systems while attracting further international investment into the region’s emerging markets.