Africa Food Security Fund

Africa

Zebu Investment Partners is an investment fund manager founded on belief that everyone deserves to be self-sufficient and that food security is the key to this basic human right. It focusses on investing in food production and processing throughout Africa, and offices include Ghana and South Africa.

Our investment

CDC made a $15 million investment into the Africa Food Security Fund (AFSF) alongside the Public Investment Corporation of South Africa, the Dutch Good Growth Fund, the African Development Bank, Denmark's IFU, EBID (the Economic Community of West African States' Bank for Investment and Development). Along with Kuramo Capital, the total commitments to the fund total $90m.

Expected impact

Food and agriculture can bring much-needed jobs and incomes to rural communities, increase food supply and reduce reliance on food imports. However, many investors shy away from some critical areas because of challenges and risks such as climate, biosecurity and commodity prices. AFSF will invest in businesses that have significant growth potential in their sector or region. It will invest in some primary agriculture, although its greater focus will be on areas such as processing and distribution, and on inputs into the sector such as fertiliser and agronomic services. The availability of credit for agribusinesses is worsening, even relative to the difficult credit situation for SMEs in Africa, so the fund will reserve a greater amount of capital than usual for follow-on investments, to ensure its investees have sufficient capital to fund their growth potential which can otherwise be stalled.

The fund has a technical assistance facility which may be accessed by investee business to, for example, develop outgrower schemes that can have the dual benefit of improving the reliability of the supply chain for processors as well as increasing incomes and services for farmers.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Zebu Investment Partners
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
August 2018
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$15m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status