Phatisa Food Fund 2

Press release

February 3, 2021

Phatisa Food Fund 2 reaches $143 million final close from DFI commitments

Press Release

A group of leading development finance institutions (DFIs) announced a joint commitment to Phatisa Food Fund 2.

Summary of Anticipated Development Impacts

MARKET DEVELOPMENT

Creating quality jobs: PFF2 aims to create over 2,000 permanent jobs and sustain another 10,000 jobs. Sustaining thousands of quality jobs for women and men, promoting climate‑smart agriculture, and fostering agricultural innovation to increase responsible food production, all the while reaching smallholder farmers.
Supporting smallholder farmers: The Fund, via its investment in companies in the food value chain, targets over 90,000 smallholder farmers and micro‑entrepreneurs and will enable them to develop their skills, broadening access to markets and economic opportunities.
Increasing agricultural output: PFF2 will also address access to, and affordability of products among farmers and promote smart agricultural methods ‑ enhancing crop resilience, reducing food loss and waste by 50% in the companies it finances, while increasing outputs, yields and incomes.

Women’s Economic Empowerment

Increasing women’s employment: PFF2 is expected to benefit more than 36,000 female employees, farmers, and customers through creation of new market linkages and the provision of technical assistance.

WOMEN’S ECONOMIC EMPOWERMENT

Advancing gender equality in the workplace: PFF2 completed the Women’s Empowerment Principles (WEPs). In addition to its initiatives and policies supporting gender equality at the Fund level, Phatisa will work with its portfolio companies to develop gender policies with targets to improve their gender performance.
Supporting women’s business ownership, leadership, and decent employment: Phatisa is qualified for the 2X Challenge based on women’s representation at its senior management level and the provision of quality employment for women, in addition to the Fund’s commitment to channel 30% of its investments to 2X eligible companies.

CLIMATE ACTION

Supporting climate‑smart agriculture: The Fund will invest in companies that deploy climate‑smart agricultural solutions such as drip‑irrigation, high‑yield seeds, drought resistant crops, GPS satellite navigation, precision agriculture, zero‑ or low‑tillage farming, water and energy management systems, intercropping and soil fertility.
Encouraging sustainable agricultural practices: For each investment, Phatisa identifies climate impact targets, such as carbon emissions avoided or energy efficiency, and provides direct support to portfolio companies in creating an appropriate implementation plan. In addition, the Fund is committed to ensure that all its investees have water management plans, including wastewater.