Tomato Jos Secures $2.5 Million to Expand Nigerian Tomato Processing

Tomato Jos has secured a US$2.5 million convertible-note investment from the EU-funded AgriFI ACP Regional Window to expand tomato farming, processing and packaged food production in northern Nigeria.

The vertically integrated company grows tomatoes, buys from local farmers and processes the crop into consumer-packaged tomato products for the Nigerian market.

More than half of Tomato Jos' raw materials are sourced from local smallholder farmers, making the investment relevant not only to factory capacity but also to farm incomes and domestic crop demand.

The financing will support new packaging equipment, factory upgrades and expansion of drip irrigation, according to EDFI Management Company, which manages the AgriFI investment.

Tomato Jos also plans to broaden its product formats and reach new customer segments as it scales the business beyond its existing packaged tomato paste operations.

Local processing is strategically important in Nigeria because it can reduce post-harvest losses and replace part of the tomato concentrate that would otherwise be imported.

EDFI says the financing is also intended to lower production costs, support lower-carbon operations and help position the company for a future Series C financing round.

The investment is a relatively small transaction by global food-industry standards, but it connects farm production, irrigation, processing, packaging and import substitution in one of Africa's largest consumer markets.