Region and country of operations: Africa, Tanzania
Jurisdiction of registration: Tanzania
Business sector: Agriculture
Date of agreement (month/year): 4/2018
Finnfund’s financing: EUR 2,500,000
Share of Finnfund’s financing: 53%
Size of project/financing: EUR 4,700,000
Environmental and social category: B+
Africado was established in 2007 as Tanzania’s first commercial and international grade producer of avocados. Since that time it has developed the business of producing and exporting Hass avocado. The company farms 137 hectares at Kifufu Estate around the Kilimanjaro area in Tanzania and contracts other commercial and small holder farmers to supplement its production. To achieve premium quality fruit, the avocados need to be handled to a high standard so Africado built and operates a fully operational packhouse at Kifufu Estate from where all the fruit is packaged and exported, primarily to the EU.
Africado is developing the business and starting the production in a new farm, Gararagua, with an avocado orchard of 175 hectares. Africado aims to expand the harvest season and increase the economics of scale of its operations. The project also encompasses the expansion of the capacity of the existing packhouse.
Main development impact
Africado currently employs 390 permanent and 200 seasonal jobs. The expansion investments are estimated to create additional permanent and seasonal jobs. Currently, 53% of permanent and 51% of seasonal employees are women.
The outgrower program currently encompasses around 2,000 local farmers. Through the smallholder and commercial farmer schemes the company is creating income and employment to thousands.
Africado also contributes positively to the negative current account of Tanzania through its exports. The company is already the biggest tax payer and employer in the Siha district.