By Gloria Ikibah
The European Union-funded Agriculture Financing Initiative (AgriFI) has invested $2.5 million into Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria, to expand production, support smallholder farmers and reduce the carbon footprint of its operations.
The investment, structured as a convertible note, was signed by EDFI Management Company (EDFI MC) through AgriFI’s ACP Regional Window on Monday.
The financing will support the expansion of local tomato processing, upgrades to the company’s factory and packaging equipment, as well as increased deployment of drip irrigation.
Tomato Jos produces and markets packaged tomato paste across Nigeria, combining its own farming operations with produce sourced from smallholder farmers and local processing.
More than half of its raw materials are currently sourced from smallholder farmers in Kaduna State.
The European Union Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment demonstrated the potential of Nigeria’s agricultural sector 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.
“It is a practical example of how the European Union works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture”.
The investment is also expected to help Tomato Jos lower its energy and production costs while expanding its range of products and reaching new customer segments, including business-to-business and hotel, restaurant and catering customers.
Chief Executive Officer of EDFI MC, Rodrigo Madrazo, said Tomato Jos offered both commercial prospects and development benefits through its integrated approach to agriculture.
“Tomato Jos combines a compelling commercial model with tangible development impact. Its integrated approach links farmers to reliable offtake while providing access to land, irrigation, inputs and technical support that can help raise productivity and incomes.
“AgriFI’s investment through the ACP Regional Window will enable targeted investments in drip irrigation and packaging capacity, helping to expand the product offer, reduce production costs, and catalyse further private investment for its next stage of growth,” Madrazo said.
Tomato Jos plans to increase its annual fresh-tomato production to about 16,000 tonnes by 2029, up from just over 4,500 tonnes currently.
The company also expects to increase the number of smallholder farmers it engages from an estimated 500 to 1,500 within the same period, while targeting an increase of more than 150 per cent in income per farmer between 2024 and 2029.
The company’s CEO, Mira Mehta, said the investment would help strengthen the tomato value chain in northern Nigeria while improving the company’s production capacity and market reach.
“AgriFI’s investment supports important next steps in building a resilient tomato value chain in northern Nigeria.
“It will enable investments that expand our production and market reach, reduce our energy costs and carbon footprint, and deepen our work with smallholder farmers.
“Our objective is to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating better and more reliable economic opportunities for the farming communities we work with,” Mehta said.
According to the company, its operations contribute to food security and import substitution by reducing post-harvest losses and increasing the supply of locally processed tomato paste.
The investment is also expected to help catalyse a further $6 million equity round in 2028, representing an anticipated leverage factor of 3.2 times.
The AgriFI investment therefore forms part of Tomato Jos’ broader expansion plans, with a focus on increasing local production, strengthening links with farmers and improving the efficiency and sustainability of tomato processing in Nigeria.
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