Norfund is investing USD 15 million in Food Fund 3 to scale food value chains across Africa. The investment aims to improve food security, support decent job creation, and contribute to more resilient and efficient food systems.
Why scaling and efficiency is vital
Africa鈥檚 food systems face mounting pressure from rapid population growth, climate change, and fragmented value chains. By 2050, .At the same time, urbanisation is accelerating, with consumption shifting toward processed and distributed food products that require efficient value chains.
It is a paradox that Africa remains heavily reliant on food imports, despite holding around . Low yields, limited access to technology and inputs, high post-harvest losses, and weak logistics all reduce availability and raise costs. Addressing these structural constraints is vital to making food more accessible and affordable.
Backing businesses that strengthen the food system
Phatisa Group Limited focuses on investing in businesses that strengthen food production, processing, and distribution across Africa. Improving performance at each step of the value chain helps reduce waste, lower costs, and ensure food reaches expanding urban markets more efficiently.
鈥淐ompetitive food value chains are critical to job creation and economic development in Africa,鈥�
Pindie Nyandoro
Regional Director in Southern Africa
Phatisa Food Fund 3 will focus on agri-inputs such as seeds, crop protection, fertilisers, and agri-tech, as well as downstream activities such as food processing, food production, cold storage, logistics, and food distribution.
Norfund鈥檚 investment is part of an USD 86 million first close alongside development finance institutions British International Investment, Swedfund, IFC, and FinDev Canada.