The European Union, through its Agriculture Financing Initiative (AgriFI), has invested $2.5 million in Tomato Jos Inc. to expand climate-smart tomato production and processing in Nigeria.

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

The financing will support product expansion, lower production costs and strengthen Tomato Jos’ engagement with smallholder farmers in northern Nigeria.

Tomato Jos operates an integrated tomato farming and processing business. It produces packaged tomato paste for the Nigerian market.

The company combines its own farm operations with produce sourced from smallholder farmers. More than half of its raw materials currently come from farmers in Kaduna State.

The EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment would strengthen local agricultural value chains while creating jobs and improving food security.

“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 added that the project would help reduce post-harvest losses and expand market opportunities for smallholder farmers, particularly women.

“It is a practical example of how the European Union works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture,” he said.

The funding will finance packaging equipment and factory upgrades. It will also support the expansion of drip irrigation across the company’s operations.

Tomato Jos plans to introduce additional product formats and reach new customer segments. These include business-to-business and hospitality customers.

The company expects the investments to reduce energy and production costs. It also expects them to improve the economics of local tomato processing.

EDFI MC Chief Executive Officer, Rodrigo Madrazo, said the company combines commercial potential with tangible development benefits.

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

He explained that the company’s integrated approach connects farmers to reliable offtake while giving them access to land, irrigation, inputs and technical support.

According to him, the AgriFI financing would support targeted investments in drip irrigation and packaging capacity.

“It 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,” he said.

Tomato Jos plans to raise annual fresh-tomato production to about 16,000 tonnes by 2029. The company currently produces just over 4,500 tonnes annually.

It also plans to increase the number of smallholder farmers it engages from about 500 to 1,500 within the same period.

The company expects average farmer income to rise by more than 150 per cent between 2024 and 2029.

Tomato Jos Chief Executive Officer, Mira Mehta, said the investment would support the next phase of the company’s growth.

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

She said the funding would expand production and market reach while reducing energy costs and the company’s carbon footprint.

Mehta added that the company aims to make locally produced, high-quality tomato paste more accessible to Nigerian consumers.

“Our objective is to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating better and more reliable economic opportunities for the farming communities we work with,” she said.

The investment is expected to contribute to food security and import substitution by increasing locally processed tomato products and reducing post-harvest losses.

It could also help attract a $6 million equity round planned for 2028. The expected leverage factor stands at 3.2 times.

AgriFI is an EU-funded investment facility managed by EDFI Management Company. It focuses on mobilising private investment in agricultural small and medium-sized enterprises in developing countries.

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

Tomato Jos operates in northern Nigeria, where it farms tomatoes and sources additional fresh produce from local smallholder farmers for processing.