Region and country of operations: Africa, Tanzania
Jurisdiction of registration: Tanzania
Business sector: Agriculture
Date of agreement (month/year): 11/2022
Finnfund’s financing: USD 2,000,000
Share of Finnfund’s financing: 50%
Size of project/financing: USD 2,000,000
Environmental and social category: B+
Africado operates Kifufu and Gararagua farms in the Kilimanjaro region in Tanzania, where it cultivates and processes avocados. Africado has 310 hectares of irrigated Hass and mixed avocado species plantations and a modern packhouse. Resource-efficient farming practices are used, and, e.g. the water usage is well below the industry average globally.
The Company has also an extensive smallholder scheme through which the local farmers have been trained and certified, and market access to their products is ensured. The avocados are exported mainly to Europe.
To expand and diversify the production, the additional funding will be used to plant the unplanted area of the Gararagua farm and to develop a new Mwanza farm planting macadamia trees.
Main development impact
Africado currently has 270 permanent employees, of which 40% are women. The expansion investments are estimated to create additional permanent and seasonal jobs.
The outgrower program currently encompasses around a couple of thousand local farmers, of which a couple of hundred are active suppliers. The company creates a livelihood source for hundreds of households through smallholder and commercial farmer schemes.
Africado has played a key role in the development of the avocado sector in Tanzania. The Company also contributes positively to the negative current account of Tanzania through its exports. The company is the biggest taxpayer and employer in the Siha district.
Last modified: December 2022