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Swedfund backs Phatisa Food Fund 3 to strengthen Africa’s food systems.(Image credit: Swedfund)

Swedfund has committed US$15mn to Phatisa Food Fund 3, a private equity fund focused on established businesses operating across the food value chain in several African countries.

The investment is designed to strengthen food security, support the creation of decent jobs, and help build more resilient and sustainable food systems across the region.

Food systems in Africa are facing growing pressure from rapid population growth, climate related challenges, and fragmented supply chains. These factors continue to limit access to affordable and nutritious food while placing strain on producers, processors, and distributors. Improving how food is produced, processed, and delivered is increasingly important to ensure food availability while supporting livelihoods and long term economic stability.

Phatisa Food Fund 3 plans to invest in companies that are looking to scale their operations or transition ownership. Drawing on Phatisa’s long standing experience in the food and agriculture sector, the fund is expected to support businesses with the potential to increase production capacity, improve operational efficiency, and create more stable employment opportunities. These investments are aimed at strengthening local and regional markets while encouraging sustainable business practices.

Sebastian Süllmann, Investment Manager for Food Systems at Swedfund, said, “Strengthening food systems is essential for inclusive and resilient growth across African markets. Through this investment, we help channel long-term capital to companies that can expand production, support decent jobs, and improve access to affordable and nutritious food. The investment also contributes to deeper value chain integration, supporting more stable and sustainable livelihoods over time.”

Swedfund’s contribution forms part of an US$86mn first close for the fund, alongside other development finance institutions including BII, Norfund, IFC, and FinDev Canada. Together, these partners aim to mobilise long term capital to support food system transformation and economic development across Africa.

The project will be led by the African Development Bank Group and will focus on one of Southern Africa’s most important shared river systems.(Image credit: GEF)

The Global Environment Facility has approved a grant of US$9.45million to support a major regional initiative aimed at improving water governance, protecting ecosystems and strengthening climate resilience across the Zambezi River Basin.

The project will be led by the African Development Bank Group and will focus on one of Southern Africa’s most important shared river systems.

Stretching across eight countries Angola, Botswana, Malawi, Mozambique, Namibia, Tanzania, Zambia and Zimbabwe the Zambezi River Basin plays a central role in the lives of more than 51 million people. It provides water for homes and farms, supports hydropower generation, sustains fisheries and underpins globally important ecosystems such as the Barotse Floodplain and the Zambezi Delta. In recent years, however, the basin has come under growing strain from climate variability, deforestation, pollution and weak coordination in water management. Average river flows have fallen by almost 20 percent over the past two decades, while repeated droughts and floods continue to threaten food production, energy supply and natural habitats.

The new GEF funded project will strengthen the ability of the Zambezi Watercourse Commission and its member states to manage shared water resources more effectively. A key focus will be the adoption of an integrated water energy food environment approach that supports long term planning and cooperation, in line with regional strategies and agreed water protocols. The initiative will promote better coordination across countries through shared guidelines, aligned environmental and social assessments and improved access to climate informed decision making tools, including the Zambezi Water Information System.

To respond to increasingly unpredictable river flows, the project will test more flexible dam operation and environmental flow practices designed to balance power generation, flood management and ecosystem protection. New financing approaches will also be introduced, including payments for ecosystem services and user fee systems, to help secure sustainable funding for water and environmental management.

Gareth Phillips, Climate and Environment Finance Manager at the African Development Bank said, “Working together, Zambezi riparian states are strengthening climate resilient river basin management to protect ecosystems and secure water, energy, and food for millions across Southern Africa.This project supports coordinated, climate informed, and financially sustainable river basin management that underpins ecosystems, thereby promoting Southern Africa’s development agenda.”

Women, young people and local communities will be actively involved throughout the project to ensure inclusive and locally grounded outcomes.The GEF grant is expected to unlock more than $140 million in additional funding from governments, development partners and the private sector, helping to deliver lasting environmental and development benefits across the region.

Under the agreement, both institutions will work closely to improve co financing mechanisms for sovereign agricultural projects included in IFAD’s portfolio.(Image credit: IFAD)

The Abu Dhabi Fund for Development and the International Fund for Agricultural Development have entered into a new partnership aimed at strengthening sustainable agriculture and improving the long term impact of rural development projects across the world.

The agreement reflects the United Arab Emirates’ continued commitment to global cooperation in food security, climate resilience and inclusive economic growth.

The partnership was signed during the World Government Summit by Mohamed Saif Al Suwaidi, Director General of ADFD, and Alvaro Lario, President of IFAD, in the presence of senior representatives from both organisations. IFAD is the only international financial institution fully dedicated to transforming rural economies and supporting small scale farmers.

Under the agreement, both institutions will work closely to improve co financing mechanisms for sovereign agricultural projects included in IFAD’s portfolio. The framework sets clear foundations for collaboration in project selection, financing and evaluation, while respecting the regulatory and operational policies of each party. By aligning procedures and coordinating approval processes, the partnership aims to make better use of available resources and increase the overall development impact of funded projects.

Mohammed Saif Al Suwaidi said, “This agreement with the International Fund for Agricultural Development reflects our ambitious vision to build strong partnerships with leading international financial institutions, based on the integration of efforts and coordination of implementation and evaluation processes. It supports the development of sustainable agricultural projects that focus on strengthening agricultural value chains, improving quality of life in rural areas, and enhancing communities’ ability to adapt to various climatic and economic changes.”

Alvaro Lario said, “Our strategic partnership with ADFD creates an advanced model for coordinated investment, maximizing our impact on rural economies. Through this institutional framework, we will mobilize resources and expertise to drive economic growth, enhance food security, and build climate resilience in rural communities.”

The collaboration marks an important step forward in the relationship between ADFD and IFAD. It opens the door to deeper cooperation, knowledge sharing and capacity building, while reinforcing a shared commitment to supporting rural communities. Through joint action and coordinated investment, the partnership aims to help communities strengthen their resilience, expand economic opportunities and build a more sustainable future.

Kakuzi launches premium black tea for the Kenyan market.(Image credit: Capital business)

Kakuzi has taken a new step in its diversification journey with the launch of Kakuzi Pure Black Tea, marking the company’s first move into selling branded tea directly to the local market.

The loose leaf tea is available in 250 gramme and 500 gramme packs and is aimed at Kenyan consumers seeking high quality tea traditionally reserved for export markets.

The launch reflects a broader shift in strategy as the agribusiness looks to add value closer to home and reduce its dependence on exports. Managing Director Chris Flowers said the move aligns with Kakuzi’s long term growth plans and its focus on building more resilient revenue streams.

“This is the first time in our history that we are offering a quality tea brand to the local market,” Flowers said. “Kenyans will enjoy export-grade tea leaves packaged in convenient sizes.”

By targeting domestic consumers, Kakuzi hopes to cushion itself against volatility in international markets. Global tea prices have remained subdued in recent years, making export focused models increasingly exposed to external shocks. The company believes that strengthening its presence at home will help balance these risks while responding to growing demand for premium, locally produced food products.

The tea launch builds on Kakuzi’s expanding portfolio of value added goods sold within Kenya. These include ready to eat macadamia nuts, cold pressed macadamia oil and fresh blueberries, all of which have helped the company move beyond raw commodity exports. The products are currently available at selected retail outlets, the Kakuzi Farmers’ Market along the Nairobi Nyeri Highway and through the company’s online store.

Alongside product diversification, Kakuzi continues to invest heavily in processing capacity. The company operates a major macadamia processing facility in Makuyu, Murang’a County, with the ability to produce up to 2,000 tonnes of saleable kernel each year, making it one of the largest operations of its kind in the country. Its macadamia oil plant can process up to 1,000 litres per day using cold press technology, supporting both domestic sales and export demand.

Looking ahead, Kakuzi has set out ambitious growth targets across its agricultural operations. Over the next decade, the firm plans to almost double avocado production and exports, increasing volumes from 3 million to 5 million cartons. It is also aiming to raise macadamia kernel output from 900 tonnes to 1,500 tonnes, reinforcing its position as a leading player in Kenya’s high value crop sector.

Ethiopia puts coffee at heart of culture climate and growth. (Image credit: Ethiopian News Agency)

Ethiopia has renewed its call for greater recognition of coffee as more than a global export, framing it as a cultural treasure, a social bond and a vital economic pillar for both the country and the wider African continent.

The message was delivered at a high level policy forum held on Tuesday during the 3rd African Coffee Week in Addis Ababa, where leaders and development partners gathered to discuss the future of Africa’s coffee industry.

Meles Mekonnen, State Minister of Agriculture said, “Coffee is far more than a tradable commodity. It is and will remain one of Africa’s most powerful symbols and strategic assets,” Meles said.

He warned that climate change is placing increasing pressure on the sector, with erratic rainfall, rising temperatures and growing pest threats already affecting production. According to Meles, smallholder farmers are bearing the brunt of these changes, making climate resilience and sustainable transformation urgent priorities.

As Africa’s largest coffee producer, Ethiopia has positioned coffee at the core of its national development strategy. Meles said the government is expanding climate smart farming practices, strengthening quality control systems and improving market transparency, while ensuring women and young people benefit from sector reforms.

He also urged African countries to rethink their role in the global coffee value chain by moving beyond raw bean exports and investing in value addition, branding and finished products. He pointed to the African Continental Free Trade Area as a major opportunity to build regional value chains and create decent jobs.

“Investments in climate smart production systems and sustainable land management are not optional; they are economically prudent,” he said. “Together, we can cultivate a coffee industry that is economically vibrant and deeply rooted in Africa’s rich heritage.”

AU Commission Chief of Staff Mohamed El Amine Souef echoed the call for stronger cooperation, noting that new harmonised African coffee standards aim to boost competitiveness.
“Coffee brings people from diverse cultures together for mutual benefit,” Souef said.

UNIDO Representative Stephen Kargbo highlighted coffee’s role in Ethiopia’s export earnings while warning of climate risks and price volatility. “No single institution or government can address these issues alone,” he said.

Italian Ambassador Sem Fabrizi praised coffee’s cultural roots and confirmed Italy’s continued support through development cooperation and increased financing via the Italian Climate Fund.

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