The European Union-funded Agriculture Financing Initiative (AgriFI) has committed $2.5 million to Tomato Jos Inc. to expand tomato processing, climate-smart farming and support for smallholder farmers in northern Nigeria.
The investment, made through a convertible note by EDFI Management Company (EDFI MC) under the AgriFI ACP Regional Window, will fund packaging equipment, factory upgrades and expanded drip irrigation.
Investment to boost tomato production
Tomato Jos produces packaged tomato paste for the Nigerian market through an integrated model combining its own farms, smallholder sourcing and local processing.
More than half of the company’s raw materials are currently sourced from smallholder farmers in Kaduna State.
The EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment showed how private financing could strengthen agricultural value chains and create opportunities for farmers.
“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,” Mignot said.
He described the initiative as a practical example of how the European Union works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture.
Tomato Jos targets 16,000 tonnes by 2029
Tomato Jos said the investment would also support expansion into new product formats and customer segments, including business-to-business and hospitality, restaurant and catering customers.
EDFI MC Chief Executive Officer, Rodrigo Madrazo, said Tomato Jos’ integrated model connects farmers to reliable markets while providing access to land, irrigation, inputs and technical support.
“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 annual fresh-tomato production from just over 4,500 tonnes to about 16,000 tonnes by 2029.
The company also aims to increase the number of smallholder farmers it engages annually from about 500 to 1,500 over the same period.
It further targets an increase of more than 150 per cent in income per farmer between 2024 and 2029.
Focus on farmers and local production
Tomato Jos CEO Mira Mehta said the financing would help strengthen the tomato value chain in northern Nigeria.
“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,” she said.
Mehta said the company aims to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating “better and more reliable economic opportunities” for farming communities.
The investment is also expected to support food security and import substitution by reducing post-harvest losses and increasing the supply of locally processed tomato products.
EDFI MC said the investment is expected to help catalyse a further $6 million equity round in 2028, representing an anticipated leverage factor of 3.2 times.
AgriFI is an EU-funded impact investment facility managed by EDFI Management Company to mobilise sustainable investment in agricultural small and medium-sized enterprises in developing countries.
The AgriFI ACP Regional Window focuses on agricultural value chains in African, Caribbean and Pacific countries, with support from the Organisation of African, Caribbean and Pacific States Secretariat.
