Phatisa Food Fund 3
Introduction
Swedfund is investing USD 15 million in Phatisa Food Fund 3, which focuses on established companies across the food value chain in multiple African markets. The investment aims to improve food security, support decent job creation, and contribute to more resilient and sustainable food systems.
Africa’s food systems are under increasing pressure from population growth, climate impacts, and fragmented value chains. Enhancing production, processing, and distribution is essential to ensure food becomes more accessible and affordable, while strengthening livelihoods.
Phatisa Food Fund 3 will invest in companies seeking to grow or transition ownership. Building on Phatisa’s long track record in the sector, the investment is expected to support companies that can expand production capacity, enhance efficiency and create more stable employment in local and regional markets.
Read more in our press release: Swedfund invests to strengthen resilient and sustainable food systems across Africa
Facts
SDG in focus
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
No Poverty
End poverty in all its forms everywhere.
Reduced Inequalities
Reduce inequality within and among countries.
Sector
Food systems
In the Food Systems sector, we contribute to increased food production, less waste during production and increased sustainability throughout the value chain.
Value creation
Impact
The investment supports job creation, food security, and sustainable livelihoods associated with improved food system outcomes. It will also contribute to sector and market development via business growth and supply chain integration across several African markets. Ultimately, Phatisa supports both deep and durable impact, as well as impact at scale.
Additionality
Swedfund’s investment is financially additional by investing in risky and capital-constrained markets that have high risk. It provides scarce capital and mobilise private investors. It is also additional by active ownership, promoting social and environmental standards, and supporting enterprise improvements.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is medium-high Risk (Fund B+) based on contextual risks in target countries, as well as sector-specific risks inherent in the consumer good companies.
ESG Mitigation Measures
Swedfund supports Phatisa in strengthening its Environmental and Social Management Systems (ESMS) processes to effectively manage both E&S contextual and sector-specific risks and enhance Phatisa's internal E&S capacity. In addition, Swedfund is assisting Phatisa in improving its Business Integrity Management system (BIMS).
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1,2 and 3 are applicable.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.
Other investments within
Food Systems