Oikocredit, a social impact investor, has invested in East Africa Foods (EAF), a Tanzanian agritech company, as part of a $40 million funding initiative aimed at enhancing food supply chains across East Africa. This investment intends to bolster climate-resilient agricultural practices, reduce food waste, and improve market access for an estimated 100,000 smallholder farmers in the region.
The funding will extend EAF’s capabilities in processing, storage, and logistics, as well as enhance its digital platform, facilitating entry into new markets and better connections between farmers and urban retailers. Oikocredit took part in EAF’s $26 million Series B equity round, which was led by the Private Infrastructure Development Group (PIDG) through its InfraCo investment solution. Other contributors included the Dutch Entrepreneurial Development Bank (FMO) and several existing investors such as ARAF, Goodwell, Africa Eats, and FINCA, who all reinvested in this funding round.
This equity financing is part of a larger capital raise of approximately $40 million, which also includes debt from the Schmidt Family Foundation. EKTA Partners served as the exclusive financial advisor for the transaction.
In Kenya and Tanzania, food production losses can reach up to 40% before products reach consumers, largely due to insufficient infrastructure for aggregation, grading, storage, and transport. These deficiencies affect farmers’ incomes and inflate food prices for urban consumers. EAF is addressing these problems by creating an integrated supply chain that connects smallholder farmers with urban marketplaces.
Currently, EAF sources produce from more than 28,000 registered smallholder farmers and provides services such as aggregation, grading, storage, processing, and distribution to over 10,000 urban retailers. The company’s strategies have reduced food losses by one-third within its network, with products marketed under brands like Onja and Golden Banana.
The new financing will allow EAF to scale its infrastructure, reinforce its operations in Tanzania, and broaden its reach into Kenya and other regional markets. EAF will also expand its training programs focused on climate-smart agricultural practices and develop digital systems to connect farmers, branches, and retailers.
These systems, originally developed in Tanzania, are intended for deployment in additional markets as EAF grows. The expansion is expected to result in higher and more predictable incomes for farmers, 45% of whom are women, while also enhancing their resilience to climate-related challenges. Urban retailers will benefit from increased quality control, greater product traceability, and more reliable access to fresh produce.
Samuel Kibiri, Senior Equity Officer at Oikocredit, emphasized the need for sustainable investment in infrastructure that connects farmers to markets. He noted that EAF’s integrated model plays a vital role in reducing food loss and improving food security for urban populations. Kibiri highlighted that this investment will support the organization’s commitment to creating lasting impact and sustainable growth across East Africa.
Elia Timotheo, the Founder and CEO of East Africa Foods, reinforced the importance of addressing infrastructure issues in agriculture. He stated, “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.” EAF continues to build the necessary systems to connect the agricultural supply chain from farms to urban markets effectively.
This funding positions East Africa Foods to expand its infrastructure and operations while tackling food loss and enhancing farmer incomes across the region.
