Impact investor AgriFI doubles down on Tanzanian business with $2m
TLDR
- AgriFI, funded by the European Union, invests $2 million in East Africa Foods Ltd for agricultural sector growth in Tanzania.
- Additional funds to support EA Foods' expansion by acquiring trucks, machinery, working capital to source directly from rural farmers.
- EA Foods projected to positively impact 15,000 farmers and 10,000 small retailers by 2025 with this investment.
AgriFI, an impact investment facility in the agriculture sector funded by the European Union and managed by EDFI Management Company, has made an additional investment of $2 million in East Africa Foods Ltd (EA Foods), a local company.
This injection of funds follows a previous investment of $1.5 million in 2021, showcasing AgriFI's ongoing commitment to supporting the growth of agricultural SMEs in the region. It aims to facilitate the expansion of EA Foods within Tanzania, particularly in Zanzibar and Dodoma.
The additional investment from AgriFI is strategically aimed at aiding EA Foods' expansion efforts by enabling the acquisition of additional trucks, machinery, and working capital to directly source from more farmers in the Northern and Southern rural areas of Tanzania. With this follow-on investment, EA Foods is projected to have a positive impact on over 15,000 farmers and 10,000 small retailers by the year 2025.
Key Takeaways
The AgriFI Tanzanian facility is an integral part of a EUR 100 million EU-funded program aimed at enhancing the livelihoods of smallholder farmers in the country. As an early example of the EU Global Gateway initiative, this program focuses on financing hard infrastructure improvements to enhance market access. EA Foods, in turn, connects smallholder farmers in horticulture value chains to these improved markets. EA Foods operates by collecting, processing, and delivering fresh produce directly from farms to urban customers, primarily street vendors. This approach eliminates multiple intermediaries along the supply chain. By doing so, the company effectively addresses post-harvest losses and bolsters food security, as all produce is consumed within Tanzania. Additionally, this activity plays a role in reducing the significant levels of imports in Tanzania, particularly in regions like Zanzibar, where EA Foods aims to source from local farmers.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.