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Sabou Capital has provided a $2 million impact-linked debt facility to Tomato Jos Farming and Processing Limited, a Kaduna-based tomato paste manufacturer working to reduce Nigeria’s reliance on imported processed tomatoes.
The naira-denominated facility is structured to tie Sabou Capital’s financial return to the social and economic impact achieved by Tomato Jos. According to the firm, the funding will support the company’s expansion plans, including scaling its smallholder farmer network and increasing processing capacity at its certified facility in Kaduna State.
“Tomato Jos is exactly the kind of business we back, one that turns an import dependency into local jobs, farmer income, and a stronger domestic economy,” said Surayyah Ahmad, managing partner at Sabou Capital. “We structured this deal so that our financial return grows with the impact they create.”
Nigeria consumes more than 2.3 million tons of fresh tomatoes annually, but until recently, up to 90 percent of processed tomato demand was met through imports. That changed after the federal government imposed a ban on tomato paste imports, creating an opening for domestic manufacturers. Tomato Jos, which has built an established supply chain with over 10,000 smallholder farmers, is positioned to capture a larger share of the market.
Mira Mehta, founder and CEO of Tomato Jos, said the investment comes at a critical time as the company competes with international firms with significant financial resources.
“As Tomato Jos continues to grow, partners like Sabou Capital are crucial to our journey. The opportunity in front of us is real, but so is the competition. We are grateful to investors like Sabou who understand why our business matters beyond the cheque they write and the financial return they will get, because supporting us means supporting a community of over 10,000 small farmers and their families,” Mehta said.
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The deal reflects a growing trend of impact-linked financing in Africa’s agriculture sector, where investors structure capital to incentivize outcomes such as job creation, farmer income growth, and import substitution.
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Tomato Jos has spent seven years building its operations in northern Nigeria, focusing on integrating smallholder farmers into its supply chain and producing paste locally to meet domestic demand. The new funding is expected to accelerate that model as Nigeria seeks to strengthen food security and reduce foreign exchange pressure from food imports.
Sabou Capital, an investment firm focused on impact-linked financing, said the partnership aligns with its strategy of backing businesses that deliver measurable economic and social returns alongside financial performance.
