The European Union-funded Agriculture Financing Initiative (AgriFI) has committed a $2.5 million convertible-note investment to Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria.
The investment, made through the AgriFI ACP Regional Window and managed by EDFI Management Company (EDFI MC), is expected to support product expansion, reduce production costs, improve lower-carbon operations and deepen the company’s engagement with smallholder farmers.
Tomato Jos produces consumer-packaged tomato paste for the Nigerian market, combining its own farming operations with local sourcing and 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 agriculture 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, reducing post-harvest losses and expanding market opportunities for smallholder farmers, particularly women,” Mignot said.
He added that the initiative represented a practical example of how the EU works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture.
The funding will support the acquisition of packaging equipment, factory upgrades and expansion of drip irrigation facilities.
It will also enable Tomato Jos to expand its product formats and target new customer segments, including business-to-business and hospitality customers.
According to the investors, the planned interventions are expected to improve the economics of local tomato processing by reducing energy and production costs.
EDFI MC Chief Executive Officer, Rodrigo Madrazo, said the company’s integrated business model links 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 said it plans to increase annual fresh-tomato production to about 16,000 tonnes by 2029, from just over 4,500 tonnes currently.
The company also plans to increase the number of smallholder farmers it engages annually from an estimated 500 to 1,500 by 2029.
It projects that income per participating farmer will rise by more than 150 per cent between 2024 and 2029.
The company’s Chief Executive Officer, Mira Mehta, said the investment would support the expansion of production and market reach while reducing energy costs and the company’s carbon footprint.
She said the objective was to make locally produced tomato paste more accessible to Nigerian consumers while creating more reliable economic opportunities for farming communities in northern Nigeria.
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 could further catalyse a $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, with a mandate to support sustainable investment in agricultural small and medium-sized enterprises in developing countries, with particular emphasis on smallholder inclusion.
The AgriFI ACP Regional Window specifically targets agricultural value chains in African, Caribbean and Pacific countries, with support from the Organisation of African, Caribbean and Pacific States (OACPS) Secretariat.
