EDFI Management Company (EDFI MC), through the European Union-funded Agriculture Financing Initiative (AgriFI), has signed a USD 2.5 million convertible-note investment in Tomato Jos Inc., a vertically integrated tomato farming and processing business in northern Nigeria.

Tomato Jos produces and sells consumer-packaged tomato paste across Nigeria. Its model combines farm operations, smallholder sourcing, and local processing. More than half of its raw materials are sourced from smallholder farmers in Kaduna State.

The European Union Ambassador to Nigeria and ECOWAS, Mr Gautier Mignot, 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."

The investment will finance packaging equipment, factory upgrades, and expanded drip irrigation. It will also support plans to introduce additional product formats and serve new customer segments, including B2B and horeca customers. The investments are expected to lower energy and processing costs.

Rodrigo Madrazo, Chief Executive Officer of EDFI MC, said: "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."

By 2029, Tomato Jos expects to increase annual fresh tomato output to approximately 16,000 tons, compared with just over 4,500 tons today. The company also plans to increase its annual engagement from an estimated 500 smallholder farmers to 1,500 by 2029, while raising income per farmer by more than 150% between 2024 and 2029.

Mira Mehta, Founder & CEO of Tomato Jos Inc., said the investment will support expansion of output and market reach, reduce energy costs and carbon footprint, and increase engagement with smallholder farmers.

Tomato Jos' operations aim to reduce post-harvest losses and increase the availability of locally processed tomato paste. The investment is also expected to catalyze a USD 6 million equity round in 2028, representing an anticipated leverage factor of 3.2x.

Source - https://www.freshplaza.com