Tomato Jos Secures $2.5m EU-Backed Investment to Expand Production, Processing

By Adedapo Adesanya

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, processing capacity and its network of smallholder farmers.

The investment, structured as a convertible note, was signed by EDFI Management Company (EDFI MC) through the AgriFI ACP Regional Window.

The financing will support the acquisition of packaging equipment, factory upgrades and the expansion of drip irrigation, while enabling the company to introduce new product formats and expand into additional markets, including business-to-business and hospitality customers.

Beyond Tomato Jos, the planned expansion could create opportunities for farmers, processors, input suppliers, logistics operators and other businesses across the tomato value chain if the company achieves its projected production and sourcing targets.

Already, more than half of Tomato Jos’ raw materials are currently sourced from smallholder farmers in Kaduna State.

The company said the investment is expected to reduce energy and production costs, strengthen the economics of local tomato processing and help cut post-harvest losses.

EU Ambassador to Nigeria and ECOWAS, Mr Gautier Mignot, said the investment would support local value creation across the tomato supply chain while expanding 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,” Mr Mignot said.

Tomato Jos plans to increase annual fresh-tomato production from just over 4,500 tonnes currently to about 16,000 tonnes by 2029.

The company also plans to expand its smallholder farmer network from approximately 500 to 1,500 farmers over the same period, while targeting an increase of more than 150 per cent in income per farmer between 2024 and 2029.

The expansion could also strengthen Nigeria’s domestic tomato processing capacity and reduce reliance on imported tomato products by increasing the availability of locally processed tomato paste.

Tomato Jos Chief Executive Officer, Ms Mira Mehta, said the funding would support the company’s expansion, reduce energy costs and its carbon footprint, while creating more reliable economic opportunities for farming communities.

The company expects the investment to help catalyse a further $6 million equity round in 2028, representing an anticipated leverage factor of 3.2 times.