British International Investment

Phatisa Food Fund 2

AfricaKenyaSouth AfricaAfricaConsumer - HealthFood & AgricultureManufacturing

Phatisa Fund 2 will invest across the food value chain in sub-Saharan Africa. The investment will strengthen and increase food supply, local production and distribution across the region. It will also address access to, and affordability of, products among farmers and promote smart agricultural methods – such as enhancing crop resilience, reducing food loss and waste, while increasing outputs, yields and incomes.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

Our investment will support a fund manager that has an intentional approach to impact, associated targets and best-in-class impact management systems to strengthen food supply through local production and distribution. The investment will also generate wider economic opportunities across Africa through the fund's support for food production and distribution across the value chain. In particular, the fund is trying to reach 90,000 smallholder farmers/ micro-entrepreneurs; create 2,000 jobs, and reduce food loss and waste by 50 per cent across all its investee companies.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.


  • Enhanced food supply (including through local production and distribution) contributing to food security (SDG 2.1)
  • Enable economic opportunities from improved access to inputs and markets for smallholder farmers (SDG 2.3)
  • Enable income-generating opportunities through direct job creation (SDG 8.5)
  • Improved sustainability resulting from reduced food waste and improved environmental practices (SDG 12.3)



By providing capital and value-add to about eight food and agriculture businesses, namely in the inputs, processing, protein, logistics, and late value-chain segments.


Stakeholder Geography Characteristics

Primarily Southern and East Africa.

Variable, both low- and high-income consumers. Target: 100 per cent of consumer-facing businesses with route-to-market for BoP. Track record: 50% of Fund I portfolio with BoP route-to-market.

Suppliers micro-entrepreneurs

Primarily Southern and East Africa.

Smallholder farmers (less than 2 ha) and commercial farmers; more than 50 per cent of sub-Saharan Africa's population work in the food and agriculture sector, and employees are likely to be semi-skilled to low-skilled.


Primarily Southern and East Africa.

65 per cent of cropland has been affected by land degradation resulting from poor agricultural practices.

How much?

Scale Depth/Duration

Target: 3MT of food/food-related products delivered.

Target: 2k permanent jobs created and 10k sustained. 90k smallholders and microentrepreneurs reached. (Track record: 1.8k jobs, 80k farmers reached.)

Likely deeper for low-income populations that are food insecure.

Target: Farmer increase yields by 25%, 100% employees earning minimum wage or over. (Track record: $1.4m cumulative increase in farmer incomes/annum.)

Target: 50% reduced food losses/wastage, 100% companies with recycling initiatives and waste water management plans.


  • Financial additionality: Our support, and that of other development finance institutions, will help the fund reach a viable size.
  • Value additionality: Our environmental, social and governance, and business integrity teams will support the fund manager in upgrading systems and processes, including climate change considerations and taking a risk-based approachoach.

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.



Execution Risk
  • Risk related to the fund manager's ability to execute its strategy and impact targets will be dependent on their ability to construct a good portfolio, and drive value-additive activities within those investments. We will monitor this through our standard monitoring process.
Unexpected Impact Risk
  • Relates to the risk of creating negative environmental or social impact for example, misuse of pesticides or fertilisers, labour and working conditions, such as health and safety. Our ESG team will support the fund manager in deepening its expertise and standards, including in implementing climate change mitigations.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    June 2024
    Project number

    An identifier number shared by investments in the same project.


    The current status of the investment (green flag for active and red flag for exited).


    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.


    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    Consumer - Health, Food & Agriculture, Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Start date :
    January 2021
    Amount :
    Currency of investment :
    Fund Manager:
    Phatisa Fund Managers 2 Ltd

    The company or investment fund’s place of incorporation.

    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    Fully qualified

Investments made by this fund into companies:

For further information about these companies, visit

Investment name Country Region Sector Start date Status
Deltamune Pty (Ltd) “Project Dalmatian” Africa Africa Consumer - Health December 2021 Active
Farming and Engineering Services Limited (FES) Africa Africa Food & Agriculture June 2021 Active
Lynx Food Group South Africa Southern Africa Food & Agriculture December 2021 Active
MHL International Holdings Ltd (Manipal) Kenya East Africa Manufacturing March 2023 Active
Rolfes Holdings Limited South Africa Southern Africa Food & Agriculture June 2020 Active

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