TAF was created to support African Agriculture Fund (AAF), a private equity fund managed by Phatisa, to address food security challenges across the African continent. The purpose of this facility is to provide technical assistance to agri and food related businesses that receive investment through the AAF, allowing them to create new opportunities for smallholder farmers, farmer business groups and rural communities.
The TAF is funded primarily by the European Commission and managed by the International Fund for Agricultural Development (IFAD). It is also co-sponsored by the Italian Development Corporation, United Nations Industrial Development Organisation (UNIDO) and the Alliance for a Green Revolution in Africa (AGRA).
TechnoServe was appointed in October 2011 by IFAD to implement this facility. TechnoServe is a US headquartered not-for-profit organisation with over 40 years of experience catalysing private-sector led inclusive economic growth in Africa.
Introducing Phatisa and the AAF
Phatisa is an African private equity fund manager, operating across sub-Saharan Africa, with offices in Mauritius, South Africa, Zambia, Kenya, and Ghana, as well as London. The firm has two sector-specific funds under management, totalling more than US$ 285 million, focused on food and affordable housing. Phatisa comprises a team with a significant track record of managing private equity funds and businesses throughout the continent. Phatisa’s African Agriculture Fund has committed investments in excess of US$ 123 million, from Sierra Leone in West Africa to Mauritius, East Africa and 10 other countries in between. This reflects a total of 16 investments (including follow-on deals) across diverse sectors: primary farming, palm oil, processing, inputs, mechanisation, fertiliser, protein production and FMCG beverages. Phatisa also introduced an Eastern and Southern African investment initiative in response to the ever-increasing housing shortage – the Pan African Housing Fund (PAHF). The Fund first closed at US$ 41.5 million in December 2012, commenced operations during Q1 2013 and has concluded two investments to date. At the heart of Phatisa is development equity, as embodied in the unique formula; a balanced blend of private equity and development finance – striving to build sustainable assets on the ground; ensuring best possible returns for investors, including the community in which these operate.
DevEq = PAT * x + i 2