twitter RSS Feed linkedin acp contact

Finnfund invests in Tanzania’s avocado farming

Finnfund, a Finnish development finance company, has provided a US$2.86mn secured loan to Africado, a Tanzanian avocado producer

avocadoAfricado promotes responsible agricultural and employment practices and generate export income in Tanzania. (Image source: Finnfund)

The price of coffee has fallen sharply in recent years primarily due to expanded production in Brazil and Vietnam. The impact is felt in Tanzania’s Kilimanjaro region where coffee farming has long been an important source of livelihood. Now local farmers are urgently seeking alternative crops.

Africado was established in 2007 as Tanzania’s first commercial and international grade producer of avocados. The company farms 137 ha around the Kilimanjaro area and contracts other commercial and local smallholder farmers. They are specialised in Hass variety, which is exported primarily to the EU.

Avocado farming provides the company’s employees and contracts farmers with higher and more secure income than coffee production.

With the help of the new financing, Africado has started to expand and develop its operations. For instance, the company is aiming to extend its avocado plantations and the operation of the present packing department. Furthermore, the company intends to diversify to other avocado varieties and nuts.

Avocados have been widely grown for domestic household consumption in gardens and small farms within Kilimanjaro for more than 100 years since it was introduced by the Germans. The humid tropical climate in the area provides ideal growing conditions where avocados flourish naturally but a lack of markets and knowledge of commercial varieties have meant that avocado production has provided no economic value.

The outgrower programme encompasses around 2000 local farmers, creating employment and income to thousands of people in the area. The company has received an international GlobalGAP certification for safe and sustainable agricultural practices. In 2016, its outgrower programme also became G.A.P. Award winner as the second African company.

With new development operations, it is expected that the number of jobs may double and provide employment, particularly for women. From the point of view of the Siha district and of the whole of Tanzania, Africado promotes responsible agricultural and employment practices and generate export income, strengthening the balance of current payments of the country.


LATEST NEWS IN Agriculture

FAO supports national plan to lower Covid-19 impact in Benin

FAO supports national plan to lower Covi…

Faced with the effects of the Covid-19 crisis, the Food and Agriculture Organisation of the United Nations (FAO) designed and implemented a project under the Technical Cooperation Program (TCP) with...

Food insecurity prompts FAO, UNICEF and World Food Programme to call for urgent action

Food insecurity prompts FAO, UNICEF and …

The latest Cadre Harmonisé food security analysis shows that more than 35 mn people (including 6.7 mn children) in the region are currently unable to meet their basic food and...

African Development Fund approves US$6.4mn grant to increase financial access for agricultural value chain entrepreneurs

African Development Fund approves US$6.4…

The Board of Directors of the African Development Fund, the African Development Bank Group’s (AfDB’s) concessional lending window, has approved a grant US$6.4mn to Gambia to implement the Incentive-Based Risk-Sharing...

Esri partners with Microsoft to support sustainable agriculture development in Africa

Esri partners with Microsoft to support …

To help support government and non-profit organisations on the continent address climate change, water supply and food security challenges, Esri, the global leader in location intelligence, has collaborated with Microsoft...

USAID and NASA renew partnership to address development and humanitarian challenges

USAID and NASA renew partnership to addr…

On 4 November, Administrator Samantha Power signed a Memorandum of Understanding (MoU) between the U.S. Agency for International Development (USAID) and the National Aeronautics and Space Administration (NASA) to renew...

Norway promises top-up contribution of urgently needed climate finance

Norway promises top-up contribution of u…

On 9 November 2022, Norway, as part of a commitment to triple its support to climate adaptation by 2026, has pledged an additional US$9.5mn contribution of urgently needed climate finance...

Prev Next

OTHER RELATED ARTICLES - Agriculture

ITFC launches series on Senegal’s groundnut sector

ITFC launches series on Senegal’s ground…

The International Islamic Trade Finance Corporation (ITFC) has announced to release a series of four short documentaries showcasing the depth of ITFC’s interventions in the groundnut sector in Senegal

Nigeria's Flour Mills to merge with Bagco and Bagco-North

Nigeria's Flour Mills to merge with Bagc…

Flour Mills of Nigeria has proposed a merger deal with Nigerian Bag Manufacturing Company (Bagco) and Northern Bag Manufacturing Company (Bagco-North)

Skills shortage in the agritech sector holding back IoT innovation: Inmarsat

Skills shortage in the agritech sector h…

While the vast majority of agritech companies are moving towards IoT, a significant proportion lack the staff and skills needed to take advantage of the technology, according to independent research...

Research uncovers gene that improves drought resistance in cereals

Research uncovers gene that improves dro…

As climate change is having a devastating impact on cereal crops, scientists at Heriot-Watt University have identified a gene responsible for drought resistance in barley which is thought to help...

Economist urges Zimbabwe authorities to adopt GM cotton seeds

Economist urges Zimbabwe authorities to …

Zimbabwe's cotton crop prices are expected to take another fall in the 2014 harvest after having cut by more than half in 2013, according to renowned economist John Robertson

FAO and IRENA partner to boost renewables in food and agriculture

FAO and IRENA partner to boost renewable…

The Food and Agriculture Organization of the United Nations (FAO) and the International Renewable Energy Agency (IRENA) have partnered to accelerate the deployment of renewable energy technologies in agri-food, fisheries...

Goat breeding a boon for Zimbabwe’s farmers

Goat breeding a boon for Zimbabwe’s farm…

Goat breeding is coming to the rescue of many farmers and ranchers in Zimbabwe who have lost a lot of their cattle to the unusually hot and dry weather

Solidaridad and EU to develop Liberia’s cocoa value chain

Solidaridad and EU to develop Liberia’s …

The EU Delegation in Liberia has signed a new partnership agreement with Solidaridad West Africa to implement the Cocoa Value Chain Development Programme in Liberia

NGO to teach modern agri techniques to Kaduna’s women farmers

NGO to teach modern agri techniques to K…

To enhance food production in Kaduna state, the Women Initiative for Sustainable Environment (WISE), an NGO, inaugurated Climate Smart Agriculture (CSA) for women smallholders

Advanced drying techniques to enhance quality of South African raisins

Advanced drying techniques to enhance qu…

Innovative drying techniques are among the several new initiatives helping to boost the quality and sustainability of South African raisins

AfDB helps to create 35,000 jobs in agricultural SMEs

AfDB helps to create 35,000 jobs in agri…

The African Development Bank’s (AfDB) project to support the employability and integration of young people in growth sectors (PAEIJ-SP) in Togo has helped create 35,000 jobs in agricultural SMEs

IOM and private agribusiness to promote youth employment in Sierra Leone

IOM and private agribusiness to promote …

The International Organization for Migration (IOM) and Sierra Tropical Limited (STL) have signed an MoU during the Seventh Tokyo International Conference on African Development

Prev Next