Tomato Jos Inc., a tomato farming and processing company in northern Nigeria, has secured a $2.5m investment from the European Union-funded Agriculture Financing Initiative to expand its production and processing operations.
The investment, structured as a convertible note, was signed by the EDFI Management Company through the AgriFI ACP Regional Window.
The funding will be used to acquire packaging equipment, upgrade the company’s factory and expand its drip irrigation system.
It will also support the introduction of new product lines and help the company reach more customers, including businesses and hospitality operators.
More than half of Tomato Jos’ raw materials are currently sourced from smallholder farmers in Kaduna State.
The company said the investment would help reduce energy and production costs, improve local tomato processing and cut post-harvest losses.
The EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment would strengthen the tomato value chain and create more opportunities for smallholder farmers, particularly women.
“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,” Mignot said.
Tomato Jos plans to increase its annual fresh tomato production from more than 4,500 tonnes to about 16,000 tonnes by 2029.
The company also plans to expand its network of smallholder farmers from about 500 to 1,500 within the same period.
It is targeting an increase of more than 150 per cent in the income earned by each farmer between 2024 and 2029.
The expansion could also increase Nigeria’s local tomato processing capacity and reduce dependence on imported tomato products by making more locally produced tomato paste available.
Tomato Jos Chief Executive Officer, Mira Mehta, said the funding would help the company expand, reduce energy costs and cut its carbon footprint while creating more reliable economic opportunities for farming communities.
The company expects the investment to help attract a further $6m equity round in 2028, representing an anticipated leverage factor of 3.2 times.
The deal comes as Nigeria continues to seek private investment in agriculture and greater local processing capacity to reduce losses between farms and consumers.
If the company’s expansion targets are achieved, the project could also create opportunities for farmers, processors, input suppliers, logistics operators and other businesses within the tomato value chain.
