Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria, has secured a $2.5 million convertible-note investment from the European Union-funded Agriculture Financing Initiative (AgriFI). The investment, made by EDFI Management Company (EDFI MC) through AgriFI’s ACP Regional Window, will support product expansion, factory upgrades, packaging equipment, drip irrigation and measures to reduce production and energy costs.
The investment will support Tomato Jos in expanding its climate-smart production and strengthening its engagement with smallholder farmers. More than half of the company's raw materials are sourced from smallholder farmers in Kaduna State. The European Union Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment demonstrated how sustainable private financing could support inclusive and climate-smart agriculture in Nigeria.
The investment will also support the expansion of drip irrigation and factory capacity, while enabling Tomato Jos to introduce additional product formats and serve new customer segments, including business-to-business and hospitality customers. According to the company, the investments are expected to improve the economics of local tomato processing by lowering energy and production costs.
EDFI MC Chief Executive Officer, Rodrigo Madrazo, said Tomato Jos combined a commercial model with development benefits by linking 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.
Tomato Jos plans to increase annual fresh-tomato production from just over 4,500 tonnes currently to about 16,000 tonnes by 2029. The company also expects to increase the number of smallholder farmers it engages annually from an estimated 500 to 1,500 over the same period, while targeting an increase of more than 150 per cent in income per farmer between 2024 and 2029.
Tomato Jos CEO, Mira Mehta, said the investment would help the company build a more resilient tomato value chain in northern Nigeria. The company said its operations contribute to food security and import substitution by reducing post-harvest losses and increasing the availability of locally processed tomato paste.
Key points
- - The investment will support Tomato Jos in expanding its climate-smart production and strengthening its engagement with smallholder farmers. - The company plans to increase annual fresh-tomato production to about 16,000 tonnes by 2029. - The investment is expected to help catalyse a $6 million equity round in 2028.
