2023-24 Impact Report - Phatisa Food Fund 2 (Food Fund 2)

Advancing Sustainable Food Systems in Sub-Saharan Africa

Phatisa Food Fund 2 (PFF 2) is proud to present its inaugural impact report, showcasing the fund's commitment to driving sustainable development through investments in the food value chain.

Key Achievements to Date:

• Food Production: Portfolio companies contributed to the production of ~1.3 million tonnes of food, with a target of 3 million tonnes by fund closure.

• Inclusive Employment: Created 6,618 permanent and seasonal jobs, with 42% held by women, surpassing the fund’s gender inclusion targets.

• Smallholder Outreach: Reached 14,240 smallholders and micro-entrepreneurs, supporting increased yields and income growth.

  
  

Catalysing Impact Through Innovation:

• Technical Assistance Facility (TAF 2): In 2022 Phatisa successfully closed a US$1 million facility, to deploy in the PFF 2 portfolio. Nine projects launched, including initiatives to train smallholder poultry farmers.

• Climate Resilience: Active decarbonisation strategies, including a net-zero pathway by 2050, are in progress for all portfolio companies.

  
  

Portfolio Highlights:

• Deltamune: Expanded vaccine availability to smallholder farmers, and supported 125,000 tonnes of food production annually.

• Lona Group: Reduced food waste through innovative supply chain practices, producing 149,000 tonnes of food since investment.

• Rolfes: Phatisa estimates that Rolfes contributes to preserving c.17, 000 tonnes of food per annum in the Southern African market..

Learning and Legacy:

Phatisa Food Fund 2 (PFF 2) has demonstrated that sustainable impact and commercial returns are not mutually exclusive but mutually reinforcing. By embedding Environmental, Social, and Governance (ESG) principles into every investment, PFF 2 has ensured that impact objectives are pursued alongside financial performance.

Key learnings from PFF 2 highlight the importance of gaining early buy-in at the portfolio level for impact-driven projects through ESG-focused clauses in shareholder agreements and robust internal capacity for sustainability. The integration of technical assistance has proven pivotal, enabling the Fund to commercialise innovative opportunities and establish proof-of-concept models for scaling sustainable practices. For example, initiatives such as Deltamune’s Project Proudly Poultry have combined technical excellence with a stakeholder-centric approach, ensuring benefits for all parties while driving measurable impact.

The legacy of PFF 2 is defined by its resilience in navigating challenges such as climate change, food insecurity, and inequality, while advancing sustainable food systems in Africa. By aligning its investments with long-term decarbonisation strategies and inclusive growth frameworks, PFF 2 leaves a blueprint for responsible investing that prioritises financial performance alongside human and environmental well-being. This enduring commitment ensures that Phatisa will continue to champion transformative change in future funds, building on the impactful legacy of PFF 2.