The European Union (EU), through its Agriculture Financing Initiative (AgriFI), has invested $2.5 million in Tomato Jos Incorporated to expand climate-smart tomato production and strengthen local processing.
The investment will also deepen the company’s engagement with smallholder farmers in northern Nigeria.
The investment, made through the AgriFI ACP Regional Window and managed by EDFI Management Company (EDFI MC), is structured as a convertible note and is expected to support the expansion of Tomato Jos’ production and processing capacity while reducing energy and production costs.
Tomato Jos, a vertically integrated tomato farming and processing company, produces consumer-packaged tomato paste for the Nigerian market through a model that combines commercial farming, smallholder sourcing and local processing.
Speaking on the investment, EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the financing demonstrated how sustainable private-sector investment could contribute to Nigeria’s agricultural development.
“Nigeria’s agricultural sector has strong potential to create jobs, strengthen food security and build more resilient local value chains,” he said.
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According to him, the investment would support a Nigerian company creating value locally, reducing post-harvest losses and expanding 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 new financing will be used to acquire packaging equipment, upgrade the company’s factory and expand drip-irrigation infrastructure.
It will also support the development of new product formats and the company’s expansion into business-to-business (B2B) and hotel, restaurant and catering (HORECA) markets.
The Chief Executive Officer of EDFI Management Company, Rodrigo Madrazo, said AgriFI is designed to mobilise private investment in agricultural small and medium-sized enterprises in developing countries, particularly businesses that integrate smallholder farmers into agricultural value chains.
He stressed that ‘Tomato Jos’ integrated model provides farmers with access to markets and agricultural support while creating opportunities for increased local processing.
“Tomato Jos combines a compelling commercial model with tangible development impact, the company’s model connects farmers to off-take arrangements while providing access to land, irrigation, inputs and technical assistance,” he stressed
According to him, the investment is expected to improve the economics of local tomato processing by reducing energy and production costs and increasing processing and packaging capacity.
“AgriFI’s investment through the ACP Regional Window 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,” Madrazo said.
Expand Production
The Chief Executive Officer, (CEO), Tomato Jos Inc., Mira Mehta, said the investment would enable the company to expand production and market reach while strengthening the resilience of Nigeria’s tomato value chain.
“AgriFI’s investment supports important next steps in building a resilient tomato value chain in northern Nigeria. It is also expected to help catalyse a $6 million equity financing round in 2028, representing an anticipated leverage factor of 3.2 times,” she said.
According to her, the funding would help the company expand production, reduce energy costs and its carbon footprint, and strengthen its relationship with small holder farmers.
“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 added.
