Tomato Jos secures $2.5m investment to expand local tomato processing
Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria, has secured a $2.5 million investment from the European Union-funded Agriculture Financing Initiative (AgriFI) to expand production, strengthen local processing and increase its engagement with smallholder farmers.
The investment, structured as a convertible note and provided through AgriFI’s ACP Regional Window, was signed by EDFI Management Company (EDFI MC), the impact investment manager responsible for managing the facility.
The financing will support the acquisition of packaging equipment, factory upgrades and expansion of drip irrigation, as the company seeks to increase production, lower energy and production costs and expand its range of tomato products.
Tomato Jos currently produces and sells consumer-packaged tomato paste across Nigeria, combining its own farming operations with supplies from smallholder farmers and local processing.
More than half of the company’s raw materials are sourced from smallholder farmers in Kaduna State.
The investment is expected to support the company’s plans to introduce new product formats and expand into additional customer segments, including business-to-business and hotels, restaurants and catering customers.
Gautier Mignot, European Union Ambassador to Nigeria and ECOWAS, said the investment would support the development of local agricultural value chains while creating 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, reducing post-harvest losses and expanding market opportunities for smallholder farmers, particularly women,” Mignot said.
He said Nigeria’s agricultural sector had significant potential to create jobs, strengthen food security and build more resilient local value chains.
Mignot added that the investment demonstrated how the European Union was working with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture.
Rodrigo Madrazo, chief executive officer of EDFI MC, said Tomato Jos’ integrated business model linked farmers to reliable markets while providing them with access to land, irrigation, inputs and technical support.
“Tomato Jos combines a compelling commercial model with tangible development impact. 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,” Madrazo said.
He said the AgriFI investment would enable targeted investments in drip irrigation and packaging capacity, helping the company expand its product offering, reduce production costs and attract further private investment.
The company plans to increase annual fresh-tomato production to approximately 16,000 tonnes by 2029, from just over 4,500 tonnes currently.
It also plans to increase its annual engagement with smallholder farmers from an estimated 500 currently to 1,500 by 2029.
Tomato Jos expects income per farmer to increase by more than 150 percent between 2024 and 2029 as its operations expand.
Mira Mehta, chief executive officer of Tomato Jos Inc., said the investment would support the next phase of the company’s expansion while strengthening the tomato value chain in northern Nigeria.
“AgriFI’s investment supports important next steps in building a resilient tomato value chain in northern Nigeria. It will enable investments that expand our production and market reach, reduce our energy costs and carbon footprint, and deepen our work with smallholder farmers,” Mehta said.
She said the company aimed to make locally produced, high-quality tomato paste more accessible to Nigerian consumers while creating more reliable economic opportunities for farming communities.
Tomato Jos said its operations also contribute to food security and import substitution by reducing post-harvest losses and increasing the availability of locally processed tomato paste.
The company’s expansion of drip irrigation is expected to support more efficient water use and contribute to its efforts to lower its carbon footprint.
The investment is also expected to attract additional private capital, with Tomato Jos projecting that it will catalyse a $6 million equity round in 2028.
According to the investment announcement, the anticipated equity mobilisation represents a leverage factor of 3.2 times.
EDFI MC said the investment was consistent with its mandate to mobilise private capital for sustainable development, particularly in markets and sectors underserved by commercial finance.
AgriFI is an EU-funded impact investment facility managed by EDFI MC. It seeks to unlock, accelerate and leverage sustainable investments in agricultural small and medium-sized enterprises in developing countries, with a particular focus on smallholder farmer inclusion.
The AgriFI ACP Regional Window is a dedicated allocation targeting entities operating in selected agricultural value chains across African, Caribbean and Pacific countries, with support from the Organisation of African, Caribbean and Pacific States Secretariat.
Tomato Jos is based in northern Nigeria and produces consumer-packaged tomato products for the domestic market, while working with local smallholder farmers to source fresh tomatoes for processing.
