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Oikocredit backs Tanzanian agritech firm East Africa Foods to reduce food loss and improve smallholder farmers’ incomes. (Image source: Oikocredit)

Social impact investor Oikocredit has invested in Tanzanian agritech company East Africa Foods (EAF) as part of a funding round worth approximately US$40mn to strengthen climate-resilient food supply chains across East Africa

The investment will support EAF’s expansion, reduce food loss and improve market access and incomes for up to 100,000 smallholder farmers over the coming years.

The funding will help expand EAF’s processing, storage and logistics infrastructure, alongside its digital platform. It will also enable the company to enter new markets and develop more efficient and sustainable connections between farmers and urban retailers.

Oikocredit participated in EAF’s US$26mn Series B equity round, led by the Private Infrastructure Development Group (PIDG) through its equity investment solution, InfraCo, alongside FMO, the Dutch Entrepreneurial Development Bank. Existing shareholders ARAF, Goodwell, Africa Eats and FINCA also reinvested.

The equity round forms part of a broader capital raise of approximately US$40mn, which includes investment from existing shareholders and debt funding from the Schmidt Family Foundation.

EKTA Partners acted as the exclusive financial advisor for the transaction.

Building more resilient food supply chains

In Kenya and Tanzania, up to 40% of food produced is lost before reaching consumers. Much of this loss occurs after harvest because of inadequate aggregation, grading, storage and reliable transport infrastructure. These gaps affect the prices smallholder farmers receive for their produce and the prices urban families pay for food.

East Africa Foods was established to address these challenges by connecting farmers directly with urban retailers through an integrated supply chain. The company currently sources produce from more than 28,000 registered smallholder farmers and provides aggregation, grading, storage, processing and distribution services to more than 10,000 urban retailers.

EAF has reduced food loss by a third across its own network. Its produce reaches consumers under the group’s brands, including Onja and Golden Banana.

With the new investment, EAF plans to strengthen its presence across East Africa while exploring opportunities to enter additional markets. Its long-term ambition is to develop African-owned and African-operated food supply chain infrastructure that can withstand the growing challenges posed by climate change.

Investing in sustainable growth and lasting impact

“At Oikocredit, we believe that building climate-resilient food systems requires investment in the infrastructure that connects farmers to markets efficiently and sustainably. EAF’s integrated aggregation, storage, processing, and distribution platform helps reduce food loss across the value chain, strengthen food security for growing urban populations, and improve the resilience and incomes of smallholder farmers, commented Samuel Kibiri, senior equity officer at Oikocredit.

"By improving supply chain efficiency and creating value across the food system, EAF is well positioned to deliver lasting impact, sustainable growth, and attractive financial returns as it scales across East Africa. We are proud to support EAF on this journey and to invest alongside like-minded partners.”

Elia Timotheo, founder and CEO of East Africa Foods, said, “A third of what our farmers grow never reaches anyone’s table. That is not a farming problem: it is an infrastructure problem, and it is solvable. For the past three years we have been building the layer this market is missing: the sourcing network, the fleet, the storage, and the technology that sit between a smallholder farm and an urban shelf. This investment enables us to further improve and scale this physical and digital infrastructure. We would like to thank our investors for their support in scaling this vital infrastructure.”

Claire Jarratt, PIDG head of investment management for InfraCo, stated, “EAF’s offering aligns well with PIDG’s mandate to deliver inclusive, climate-resilient growth across the countries in which we operate. Strengthening EAF’s presence in Tanzania, and expanding its efficient, data-driven business into Kenya, will enable the company to mobilise future finance into this vital sector, underpinning improved food security across the region.”

Alongside expanding its physical infrastructure, EAF will extend training for smallholder farmers in climate-smart production methods and further develop the digital systems connecting farmers, branches and retailers. Developed in Tanzania, these systems are designed for deployment in new markets as the company expands.

Up to 100,000 smallholder farmers, 45% of them women, are expected to benefit from higher and more predictable incomes and improved climate resilience. Urban retailers are also expected to benefit from improved quality control, product traceability and more reliable access to fresh produce through EAF’s formalised supply chains.

Peter Byrde, director private equity at FMO, said, “Through our partnership with East Africa Foods, we have seen how investments in logistics, storage, processing, and digital solutions can reduce food loss, improve market access, and increase income opportunities for smallholder farmers. That’s why FMO is pleased to support EAF’s next phase of growth as it expands critical supply chain infrastructure across the region, helping to build a more efficient, resilient, and inclusive food system. By demonstrating a scalable and commercially viable model for agri-logistics, we believe EAF can help catalyse greater private sector investment into the sector and pave the way for increased commercial funding in the years ahead.”

Africa’s seed summit calls for greater investment, climate-resilient crops and improved access to quality seeds for farmers. (Image source: African Union)

Africa must strengthen its capacity to produce quality seed and ensure farmers receive the investment and support needed to build a more secure and self-reliant food future

This was the central message from His Majesty King Mswati III and African Union Commission (AUC) deputy chairperson H.E. ambassador Selma Malika Haddadi at the inaugural Africa Seed Summit in Ezulwini, Kingdom of Eswatini.

Their addresses linked Africa’s agricultural ambitions to the needs of farmers seeking reliable harvests, young people looking for economic opportunities, and households requiring a dependable supply of nutritious food.

Officially opening the Summit on 6 October 2026, His Majesty emphasised that seed is fundamental to Africa’s food sovereignty. He highlighted how decisions about seed production, ownership and investment will influence the continent’s agricultural future.

“No fertilizer, irrigation or machinery can make up for poor seed,” His Majesty said.

Convened by the African Union Commission and hosted by the Kingdom of Eswatini from 5 to 7 October 2026, the Summit was held under the theme “Resilient Seed Systems for a Food Secure Africa”.

Building Africa’s capacity to feed itself

His Majesty urged African countries to build on their agricultural strengths and collaborate to increase the continent’s food production.

“Each nation must maximise the crops for which it is best suited and where one country shows particular strength, the other Member States must support it, because all of us are Africans. In the end, what we want is to see a successful Africa that is food secure,” he said.

He outlined a coordinated approach involving soil testing, investment in dams and irrigation, improved storage facilities and transport links to facilitate food movement between African markets. He also highlighted the role of the African Continental Free Trade Area and called on financial institutions and development partners to support viable agricultural projects.

His Majesty emphasised the need to conserve Africa’s indigenous genetic resources and develop climate-resilient crop varieties. These efforts would help farmers address drought, pests and other production challenges while preserving resources for future generations.

Drawing on Eswatini’s experience, he highlighted improvements to the national gene bank, efforts to multiply seed and germplasm, and training that had enabled some farmer groups to begin small-scale seed production. He also welcomed further investment and knowledge-sharing with other African countries.

He urged Member States to ensure that agreed programmes translate into practical results.

“Frameworks that remain on paper feed no one,” His Majesty said.

Making progress count for farmers

Ambassador Haddadi, representing AUC Chairperson H.E. Mahmoud Ali Youssouf, emphasised that implementation must prioritise farmers’ access to quality seed.

She called for investment in research, plant breeding, seed testing, certification and extension services, alongside support for seed enterprises capable of reaching farmers more effectively.

Many farmers continue to face difficulties obtaining suitable seed before planting at affordable prices. Addressing this challenge requires stronger institutions and reliable services, while creating opportunities for women and young people to participate in seed production, innovation and business.

Ambassador Haddadi also urged governments and development partners to strengthen connections between formal and farmer-managed seed systems, recognising their respective contributions to agricultural production, biodiversity and rural livelihoods.

“Let us therefore leave Ezulwini with renewed determination to translate commitments into action, partnerships into investments, and strategies into measurable results,” she said.

Her message highlighted the importance of measuring continental progress through tangible improvements in farmers’ fields, incomes and resilience.

Turning shared ambitions into action

The Ezulwini Outcome Document, adopted by ministers, establishes commitments to improve affordable and timely access to quality seed and planting materials, particularly for smallholder farmers, women and young people.

The commitments include increased investment in plant breeding, research and seed enterprises, alongside support for productive, nutritious and climate-resilient crop varieties that meet farmers’ needs.

The document also recognises farmer-managed seed systems as an essential component of Africa’s agricultural capacity. It calls for support for community seed banks, farmer networks and local enterprises, the protection of farmers’ rights, and the fair sharing of benefits arising from genetic resources and traditional knowledge.

Ministers also requested the development of an integrated African Seed and Gene Bank System, including a continental institution working alongside national and regional gene banks. The proposed system is intended to strengthen conservation and support the use of Africa’s plant genetic resources in research and future agricultural production.

Efforts to harmonise seed policies and standards and reduce barriers to intra-African seed trade are intended to improve access to quality seed across national borders. Ministers also called for increased public and private investment, coordinated implementation and regular monitoring of progress.

The outcome document and its recommendations will be submitted through the appropriate African Union policy organs for consideration, validation and formal endorsement.

At the closing ceremony, H.E. Moses Vilakati, AUC Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, welcomed the consensus reached on recommendations to guide the next phase of work to strengthen Africa’s seed systems.

He described the adopted document as the beginning of a new implementation phase and a roadmap for collaboration among the African Union Commission, Member States, Regional Economic Communities, development partners, research institutions, farmers’ organisations and the private sector.

 

Tanzania has taken a significant step towards strengthening its agricultural sector with the launch of a new large scale rice mill in Kahama district

The facility, developed by local company KOM Food Products Ltd, represents an investment of more than 100 billion Tanzanian shillings, equivalent to around US$39.56million. Construction of the plant was completed on a 54 hectare site and operations officially began in late January, according to the Tanzania Investment and Export Zones Authority.

The project is being described as one of the most important agro industrial developments in the country. While details of its processing capacity have not been made public, the mill is expected to play a central role in supporting local rice farmers. Most of the paddy processed at the facility will be sourced from producers in the Shinyanga region, helping to create a more reliable market for smallholder farmers.

“Beyond industrial output, the project is expected to strengthen agricultural value chains in Shinyanga Region by providing a stable market for paddy rice produced by smallholder farmers,” the press statement said. “The investment supports Tanzania’s broader strategy to expand domestic agro processing, enhance food security, and retain more value within the country by shifting more of the rice value chain — from farming to milling and packaging — into local production.”

Tanzania has been self sufficient in rice for several years, producing more than it consumes and supplying neighbouring countries with surplus grain. Data from the Ministry of Agriculture show that rice production averaged 2.43 million tonnes per year between the 2019 2020 and 2023 2024 seasons, while domestic demand stood at about 1.2 million tonnes annually. The new mill is expected to increase local processing capacity and make it easier to channel surplus rice into export markets.

According to TISEZA, KOM Food Products plans to expand production gradually in response to growing demand. “KOM Food Products said it plans to scale up production in phases to meet rising domestic demand and explore regional market opportunities in East and Southern Africa,” the authority highlighted.

Rice exports from Tanzania have fluctuated in recent years. Between 2020 and 2024, the country exported an average of nearly 387,066 tonnes of milled rice each year, with exports peaking at 622,422 tonnes in 2022. Export revenues during this period averaged close to $191 million annually, with key markets including Uganda, Kenya, Rwanda and the Democratic Republic of Congo.

With East African Community countries importing large volumes of cereals each year, the Kahama rice mill could help Tanzania strengthen its position as a regional supplier while supporting farmers, creating jobs and adding more value within the country.

Africa has taken a major step towards closing its long standing agricultural mechanization gap as leaders, experts and development partners gathered in Dar es Salaam for the Africa Conference on Sustainable Agricultural Mechanization

The event opened with the launch of Tanzania’s National Agricultural Mechanization Strategy 2026 to 2036, signalling a renewed continent wide push to modernise farming systems.

The strategy was unveiled by the Prime Minister of the United Republic of Tanzania, Mwigulu L. Nchemba, alongside FAO Deputy Director General Beth Bechdol. The conference is organised by the Food and Agriculture Organization of the United Nations and hosted by the Tanzanian government, bringing together governments, private sector players, researchers, youth groups and farmers to share ideas and scale up solutions that work for Africa.

Opening the conference, Prime Minister Nchemba stressed that mechanization is no longer optional for the continent. “Through action, we can change Africa’s agriculture to be a mechanized sector that is sustainable, for this generation and future generations.” He noted that the new ten year plan aligns with the FAO African Union Framework for Sustainable Agricultural Mechanization in Africa and places women and young people at the centre of transformation.

FAO Deputy Director General Beth Bechdol said past approaches had failed because they focused on importing machinery without building the systems needed to support it. “Mechanization today cannot look like mechanization of the past. Shipping in large machines without financing, training, repair services, or local adaptation has not delivered lasting results. Africa does not need more equipment sitting idle. It needs systems that work,” she said. She added, “At FAO we see sustainable mechanization as a catalyst for transformation not as machines replacing people, but tools empowering people, reducing back breaking labour and creating space for women to farm more productively.”

African Union Commissioner Moses Vilakati highlighted the human dimension of the agenda, saying, “Our mechanization agenda is also a dignity agenda.”

Africa still relies heavily on manual and animal labour despite holding around half of the world’s uncultivated arable land. Crop yields remain well below global averages, even though agriculture supports the majority of livelihoods. Sustainable mechanization is seen as key to boosting productivity, creating skilled jobs and supporting climate smart farming.

FAO Regional Representative Abebe Haile Gabriel said, “Choosing a new direction that embraces mechanization, digitalization, scientific innovation and inclusive policies can fundamentally transform Africa’s agrifood landscape.”

The conference will also spotlight youth employment, digital tools such as machinery hire platforms and drones, and innovative financing, as FAO reaffirms its commitment to support African countries in building a modern and resilient agricultural future.

Image credit: Ethiopian news Agency

Ethiopia has renewed its call for greater recognition of coffee as more than a global export, framing it as a cultural treasure, a social bond and a vital economic pillar for both the country and the wider African continent

The message was delivered at a high level policy forum held on Tuesday during the 3rd African Coffee Week in Addis Ababa, where leaders and development partners gathered to discuss the future of Africa’s coffee industry.

Meles Mekonnen, State Minister of Agriculture said, “Coffee is far more than a tradable commodity. It is and will remain one of Africa’s most powerful symbols and strategic assets,” Meles said.

He warned that climate change is placing increasing pressure on the sector, with erratic rainfall, rising temperatures and growing pest threats already affecting production. According to Meles, smallholder farmers are bearing the brunt of these changes, making climate resilience and sustainable transformation urgent priorities.

As Africa’s largest coffee producer, Ethiopia has positioned coffee at the core of its national development strategy. Meles said the government is expanding climate smart farming practices, strengthening quality control systems and improving market transparency, while ensuring women and young people benefit from sector reforms.

He also urged African countries to rethink their role in the global coffee value chain by moving beyond raw bean exports and investing in value addition, branding and finished products. He pointed to the African Continental Free Trade Area as a major opportunity to build regional value chains and create decent jobs.

“Investments in climate smart production systems and sustainable land management are not optional; they are economically prudent,” he said. “Together, we can cultivate a coffee industry that is economically vibrant and deeply rooted in Africa’s rich heritage.”

AU Commission Chief of Staff Mohamed El Amine Souef echoed the call for stronger cooperation, noting that new harmonised African coffee standards aim to boost competitiveness.
“Coffee brings people from diverse cultures together for mutual benefit,” Souef said.

UNIDO Representative Stephen Kargbo highlighted coffee’s role in Ethiopia’s export earnings while warning of climate risks and price volatility. “No single institution or government can address these issues alone,” he said.

Italian Ambassador Sem Fabrizi praised coffee’s cultural roots and confirmed Italy’s continued support through development cooperation and increased financing via the Italian Climate Fund.

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