EU-funded financing through AgriFI’s ACP Regional Window will support local processing, smallholder farmers and lower-carbon operations in Nigeria.
EDFI Management Company (EDFI MC), through the European Union-funded Agriculture Financing Initiative (AgriFI), has signed a USD 2.5 million convertible note investment in Tomato Jos Inc., a vertically integrated tomato farming and processing business in northern Nigeria.
Financed through AgriFI’s ACP Regional Window, the investment will support product expansion, lower production costs and deepen engagement with smallholder farmers.
The investment will finance packaging equipment, factory upgrades and the expansion of drip irrigation, while supporting plans to expand product formats and serve new customer segments, including B2B and HORECA customers.
It is expected to strengthen the economics of local tomato processing by lowering energy and production costs.
European Union Ambassador to Nigeria and ECOWAS, Gautier Mignot said Nigeria’s agricultural sector has strong potential to create jobs, strengthen food security and build more resilient local value chains.
He said through the EU-funded AgriFI ACP Regional Window, this investment in Tomato Jos supports a Nigerian business that is creating local value from farm to shelf, reducing post-harvest losses and expanding market opportunities for smallholder farmers, particularly women
Chief Executive Officer, EDFI MC, Rodrigo Madrazo said Tomato Jos combines a compelling commercial model with tangible development impact.
According to Mira Mehta, CEO, Tomato Jos Inc, by 2029 Tomato Jos expects to increase annual fresh-tomato production to approximately 16,000 tonnes, compared with just over 4,500 tonnes today.
The company aims to expand its annual engagement from an estimated 500 smallholder farmers to 1,500 farmers by 2029, while increasing income per farmer by more than 150% between 2024 and 2029.
Tomato Jos’ operations contribute to food security and import substitution by reducing post-harvest losses and increasing the availability of locally processed tomato paste.
The investment is also expected to catalyse a USD 6 million equity round in 2028, representing an anticipated leverage factor of 3.2x.
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager that designs and manages blended finance facilities to mobilise private investment in sustainable development.
AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union and managed by EDFI Management Company, with a mandate to unlock, accelerate and leverage sustainable investments in agri-SMEs in developing countries, with a specific focus on smallholder inclusiveness.
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(Editor: Ken Eseni)
