Updated Jan 11, 2018

African Agriculture Fund

Offered by Phatisa

Phatisa comprises a team with a significant track record of managing private equity funds and businesses throughout the continent. Phatisa’sAfrican Agriculture Fundhas committed investments in excess of US$ 123 million, from Sierra Leone in West Africa to Mauritius, East Africa and 10 other countries in between.
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Loan, EquityType
Open Year RoundDeadline
$5,000,000 - $24,000,000Amount
10 YearsDuration(Months)

Mandatory Requirements

StageStage 5: Scaling and Stage 6: Sustained Scale
Implemented in:
RegionN/A
CountryCape Verde, Comoros, Guinea, Ghana, Gambia, The, Gabon, Ethiopia, Eritrea, Equatorial Guinea, Congo, Democratic Republic of the, Chad, Cameroon, Burundi, Burkina Faso, Botswana, Benin, Angola, Sao Tome and Principe, Mauritius, Malawi, Senegal, Rwanda, Nigeria, Niger, Namibia, Mozambique, Mauritania, Mali, Liberia, Lesotho, Kenya, Guinea-Bissau, Cote d'Ivoire, Central African Republic, Togo, Seychelles, Uganda, Zimbabwe, Zambia, Tanzania, Swaziland, Sudan, South Africa, Somalia, Sierra Leone and Madagascar
Focus AreasAgriculture and Policy and Regulation
Cultivation & Tools (Agriculture)
Livestock & Agriculture (Agriculture)
Agriculture and Technology
Seeds & Stock (Agriculture)
Post Harvest (Agriculture)
Processing & Production (Agriculture)
The AAF targets three subsectors of food and agriculture: primary, secondary and tertiary (services and infrastructure).
  • Primary agricultureencompasses arable land development, cereals and staples, dairy and livestock farming, aquaculture, fruit and vegetables, ranching, plantations and edible oils; especially produce for local consumption.
  • Secondary agricultureincludes maize and wheat milling, soya processing, sugar milling and refining, production of animal feeds, beverages and branded foods as well as packaging.
  • Tertiary agricultureextends to services and infrastructure including logistics, storage, seeds, subcontracting, physical inputs, crop protection, input financing and fertiliser.
Criteria for AAF to invest:• equity investment requirement of US$ 5 million to US$ 24 million;
  • experienced management team with a compelling vision for the business and a willingness to collaborate with a financial investor;
  • proven financial, operational track record;
  • potential for future growth and vertical integration;
  • commitment to transparency;
  • realistic entry valuation; and
  • ability to achieve a profitable liquidity event in the medium term

Other Requirements

Management TeamAn experienced management team with a compelling vision for the business and a willingness to collaborate with a financial investor.REQUIRED
Potential for Scale
A commitment to transparency and proven sustainable industry-competitive advantages. We only support commercially sustainable businesses with a proven track record. We do not invest in informal or micro enterprises, or SME companies looking for an investment less than US$ 5 million. One of the key criteria Phatisa considers when making an investment is the ability to achieve a liquidity event over four to seven years. The exit strategy is always well thought through in order to secure the combined interests of the Fund, the company, its founding members and management. Exit strategies include the sale of the Fund's interests in portfolio companies to trade players, majority shareholders, local communities, secondary MBOs and listings on local exchanges, which are seeing increasing liquidity as asset management in Africa grows, in addition to dual listings, which improve fungibility.
REQUIRED
Financial StatementsA proven financial and operational track records and potential for future growth; a realistic valuation; and an ability to achieve a profitable liquidity event in the medium term.REQUIRED
OtherCompanies in which we invest must adhere to social and environmental codes of conduct.

Application Directions

If you or your company have a business venture that meets the AAF investment criteria, please complete and submit the one-page AAF Funding Application Form, available in either MSWord or PDF format, to the AAF deal team at foodinvestmentproposal@phatisa.com. Please submit information on core business activities, investment required (US$ equivalent), purpose of funding and contact details. Our Phatisa agri deal team look forward to considering your proposal and will be in contact in due course.

Application And Awards Process

We apply a rigorous pre-investment process; every new investment opportunity will initially be evaluated by us. The due diligence process and time required is largely driven by the applicant and depends on the quality of the initial proposal, as well as the experience and effort put in by the management team.

Attachments

FAQ-AAF.pdf
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