Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria, has secured a $2.5 million investment from the Agriculture Financing Initiative (AgriFI) to expand climate-smart production and strengthen local tomato processing.
The investment, made through a convertible note by the EDFI Management Company (EDFI MC), is funded by the European Union through AgriFI’s ACP Regional Window.
The financing will support the expansion of Tomato Jos’ production capacity, packaging equipment, factory upgrades and drip irrigation, while helping the company reduce energy and production costs and expand into new customer segments, including business-to-business and hospitality customers.
Tomato Jos produces packaged tomato paste for the Nigerian market through a model that combines its own farming operations, sourcing from smallholder farmers and local 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 how sustainable private financing could support inclusive and climate-smart agriculture while creating jobs and strengthening local food value chains.
He said the investment would help Tomato Jos create local value “from farm to shelf”, reduce post-harvest losses and expand market opportunities for smallholder farmers, particularly women.
According to EDFI MC Chief Executive Officer, Rodrigo Madrazo, the investment would enable targeted investments in drip irrigation and packaging capacity, while strengthening the company’s links with farmers through reliable off-take, access to land, irrigation, inputs and technical support.
The Chief Executive Officer of Tomato Jos Inc., Mira Mehta, said the investment would help the company expand production and market reach, reduce energy costs and its carbon footprint, and deepen its engagement with smallholder farmers.
She said the company’s objective was to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating more reliable economic opportunities for farming communities in northern Nigeria.
Tomato Jos plans to increase annual fresh-tomato production from slightly above 4,500 tonnes currently to about 16,000 tonnes by 2029.
The company also expects to increase the number of smallholder farmers it engages from about 500 to 1,500 within the same period, while targeting an increase of more than 150 per cent in income per farmer between 2024 and 2029.
The investment is also expected to support a $6 million equity round in 2028, representing an anticipated leverage factor of 3.2 times.
The initiative is expected to contribute to food security and import substitution by reducing post-harvest losses and increasing the availability of locally processed tomato paste in Nigeria.
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, with a focus on integrating smallholder farmers into value chains.
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