EU Invests $2.5m in Tomato Jos for Climate-Smart Farming

The European Union has committed $2.5 million to Tomato Jos Inc. to expand climate-smart tomato farming and processing in northern Nigeria.

The investment, provided through the EU-funded Agriculture Financing Initiative (AgriFI), will support production expansion, factory upgrades and measures to reduce energy and operating costs.

EDFI Management Company (EDFI MC) executed the investment through a convertible note under the AgriFI ACP Regional Window.

Tomato Jos operates an integrated farming and processing model that combines its own agricultural production with produce supplied by smallholder farmers.

The company currently sources more than half of its tomato requirements from smallholder farmers in Kaduna State. It processes the fresh produce into packaged tomato paste for the Nigerian market.

EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the financing would help strengthen local agricultural value chains and create opportunities for farmers.

“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,” Mignot said.

He said the project would also help reduce post-harvest losses while expanding market opportunities for smallholder farmers, especially women.

According to him, the investment reflects the EU’s efforts to mobilise private capital towards sustainable and climate-smart agriculture.

The funding will finance new packaging equipment and factory improvements. Tomato Jos will also use part of the investment to expand drip irrigation.

The company plans to introduce more product formats and pursue additional markets, including business-to-business and hospitality customers.

It expects the upgrades to reduce energy and production expenses while improving the competitiveness of locally processed tomato products.

Chief Executive Officer of EDFI MC, Rodrigo Madrazo, said Tomato Jos had developed a business model with both commercial and development benefits.

“Tomato Jos combines a compelling commercial model with tangible development impact,” Madrazo said.

He said the company’s integrated approach links farmers to reliable markets while providing access to irrigation, inputs and technical support.

Madrazo added that the AgriFI investment would strengthen production capacity and help attract further private capital for the company’s expansion.

By 2029, Tomato Jos expects to increase annual fresh-tomato production to about 16,000 tonnes from just over 4,500 tonnes currently.

The company also plans to increase the number of smallholder farmers in its network from about 500 to 1,500 during the period.

It projects that income per farmer will rise by more than 150 per cent between 2024 and 2029.

Tomato Jos Chief Executive Officer, Mira Mehta, said the financing would help the company strengthen its operations and expand its market presence.

“AgriFI’s investment supports important next steps in building a resilient tomato value chain in northern Nigeria,” Mehta said.

She said the investment would help the company expand production, lower energy costs and reduce its carbon footprint.

Mehta added that Tomato Jos wanted to make locally produced tomato paste more accessible to Nigerian consumers while improving economic opportunities for farming communities.

The investment also forms part of efforts to reduce post-harvest losses and increase the supply of locally processed tomato products.

Tomato Jos expects the project to support food security and import substitution by increasing domestic processing of fresh tomatoes.

The company also expects the investment to help catalyse a $6 million equity round in 2028, with an anticipated leverage factor of 3.2 times.

AgriFI is managed by EDFI Management Company and focuses on mobilising sustainable private investment into agricultural small and medium-sized enterprises in developing countries.

Its ACP Regional Window supports businesses operating in selected agricultural value chains across African, Caribbean and Pacific countries.

Tomato Jos, which operates in northern Nigeria, combines commercial tomato farming with sourcing from local smallholder farmers for processing and sale to the domestic market.