Tanzania avocado industry receives EUR 2.5million boost

Tanzania Avocado Industry To Receive Funding

Tanzania avocado industry received a boost after one of its agricultural producer company
Africado secured a EUR 2.5million development loan.
The company which specialises in growing Hass avocado for exports, farms 137 hectares around
the Kilimanjaro area and contracts other commercial and local smallholder farmers.
Avocados have been widely grown for domestic household consumption in gardens and small
farms within the Kilimanjaro area for more than 100 years.
The new financing was advanced by Finnfund, a Finnish development financier and professional
impact investor. It has helped the company expand its development operations which is expected
double the number of jobs available while raising employment for women.
Sustainable avocado farming is a viable alternative for Tanzania’s Kilimanjaro region farmers
whose livelihoods have been shaken by the plunging price of coffee. Company’s employees and
avocado contract farmers are assured of a higher, more secure income than those engaging in
coffee production.
“Finnfund’s funding has enabled us to expand production areas and introduce new avocado
cultivars. This will economically benefit the local community in terms of employment and
increased export earnings,” said James Parsons, CEO of Africado.
Commercial production started in 2007 and the company has worked closely with local
smallholders, distributing avocado seedlings, providing training and market access.
Agriculture is a focal area of Finnfund because developing countries greatly need agricultural
production and the sector has great potential. Most African smallholder farmers produce low-
value crops for personal and local consumption. The processing and sales of the crop forward are
often difficult. Therefore, the responsible developing of agriculture and food production is key for the sustainable development of the sector.


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