The EU-funded Agriculture Financing Initiative (AgriFI) has invested $2.5 million in Tomato Jos Incorporated to expand climate-smart tomato production and processing in northern Nigeria.
Modestus Chukwulaka, press officer for the European Union (EU) Delegation to Nigeria and an ECOWAS officer, disclosed this in a statement in Abuja on Monday.
The statement said the investment, managed by the European Development Finance Institutions Management Company (EDFI MC), through AgriFIs, will benefit African, Caribbean, and Pacific (ACP) Regional windows.
The statement added that the convertible-note investment will help Tomato Jos, a vertically integrated tomato farming and processing company, expand its product range, reduce production costs, and deepen engagement with smallholder farmers.
It said Tomato Jos would produce and sell consumer-packaged tomato paste nationwide, combining farm operations, smallholder sourcing and local processing.
“More than half of its raw materials are currently sourced from local smallholder farmers in Kaduna State,” it stated.
The EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment demonstrated Nigeria’s potential to create jobs, strengthen food security and build resilient local value chains.
“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.
“It is a practical example of how the EU works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture,” Mr Mignot said.
The statement said the financing would fund packaging equipment, factory upgrades and drip irrigation expansion.
It said the investment would also support Tomato Jos’ plans to expand its product formats and serve new customer segments, including business-to-business and hotel, restaurant and catering (HORECA) customers.
According to the statement, the investment is expected to strengthen the economics of local tomato processing by reducing energy and production costs.
The statement quoted Rodrigo Madrazo, chief executive officer of EDFI MC, as saying that Tomato Jos combined a commercial model with 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,” he said.
Madrazo said AgriFI’s investment through the ACP Regional Window would support targeted investments in drip irrigation and packaging capacity.
He said the investment would help expand the company’s product offering, reduce production costs and attract further private investment.
According to him, Tomato Jos projects annual fresh-tomato production would rise to about 16,000 tonnes by 2029, from just over 4,500 tonnes currently.
He said the company also planned to increase the number of smallholder farmers it engaged from about 500 to 1,500 by 2029.
It also aimed to increase income per farmer by more than 150 per cent between 2024 and 2029, he said.
Tomato Jos Inc. Chief Executive Officer Mira Mehta said the investment would support efforts to build a resilient 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.
Ms Mehta said the company aimed to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating more reliable economic opportunities for farming communities.
The statement said Tomato Jos’ operations contributed to food security and import substitution by reducing post-harvest losses and increasing the availability of locally processed tomato paste.
It added that the investment was expected to catalyse a six-million-dollar equity round in 2028, representing an anticipated leverage factor of 3.2 times.
EDFI MC is a multilaterally owned impact asset manager that designs and manages blended-finance facilities to mobilise private investment in sustainable development.
AgriFI is an EU-funded impact investment facility managed by EDFI MC to unlock, accelerate and leverage sustainable investment in agricultural small and medium-sized enterprises in developing countries, with a focus on smallholder inclusiveness.
The AgriFI ACP Regional Window targets entities operating in specific agricultural value chains in African, Caribbean and Pacific countries, with support from the Organisation of African, Caribbean and Pacific States (OACPS) Secretariat.
(NAN)