A $2.5 million convertible-note investment from EDFI Management Company (EDFI MC), through the European Union-funded Agriculture Financing Initiative (AgriFI), is set to finance expansion at Tomato Jos Inc., as the northern Nigeria-based tomato farming and processing company targets more than a threefold increase in fresh tomato production by 2029.
The investment will support the acquisition of packaging equipment, factory upgrades and expanded drip irrigation, while funding the introduction of additional product formats and expansion into new customer segments, including business-to-business and hospitality, restaurant and catering (HoReCa) markets.
Tomato Jos produces and sells consumer-packaged tomato paste in Nigeria through a vertically integrated model that combines its own farming operations, smallholder sourcing and local processing.
More than half of the company’s raw materials are sourced from smallholder farmers in Kaduna State, according to the company.
Tomato Jos expects the investment to help raise annual fresh tomato output to about 16,000 tonnes by 2029, from just over 4,500 tonnes currently.
The expansion is also expected to significantly increase the company’s engagement with smallholder farmers.
Tomato Jos plans to increase the number of smallholder farmers it works with annually from an estimated 500 to 1,500 by 2029.
It also expects income per farmer to rise by more than 150 percent between 2024 and 2029, as the company expands production and strengthens its sourcing network.
Rodrigo Madrazo, chief executive officer of EDFI MC, said Tomato Jos’ integrated model connects farmers to reliable offtake while providing access to land, irrigation, inputs and technical support.
The model, he said, could help farmers increase productivity and incomes while strengthening the supply chain for locally processed tomato products.
Gautier Mignot, European Union Ambassador to Nigeria and ECOWAS, said the investment supports a Nigerian business that creates local value from farm to shelf, reduces post-harvest losses and expands market opportunities for smallholder farmers, particularly women.
The funding is being provided through the AgriFI ACP Regional Window, which is financed by the European Union.
Beyond increasing production capacity, the investment is expected to improve the economics of Tomato Jos’ operations.
Factory upgrades and new packaging equipment are expected to support higher processing capacity, while expanded drip irrigation should improve agricultural productivity and supply reliability.
The company also expects the investment to lower energy and processing costs, while reducing the carbon footprint of its operations.
The planned expansion into additional product formats and B2B and HoReCa customers is expected to broaden the company’s market beyond its existing consumer-packaged tomato paste business.
Mira Mehta, founder and chief executive officer of Tomato Jos, said the investment would support output growth and market expansion while reducing energy costs and the company’s carbon footprint.
The company also aims to reduce post-harvest losses and increase the availability of locally processed tomato paste in the Nigerian market.
The EDFI MC investment is also expected to serve as a catalyst for a larger capital raise.
According to EDFI MC, the investment is expected to help catalyse a $6 million equity round in 2028, with anticipated leverage of 3.2 times.
The planned capital mobilisation could provide further funding for Tomato Jos’ expansion as the company scales its agricultural sourcing network and processing capacity.
