East Africa Foods (EAF), a Dar es Salaam-headquartered agritech and food distribution company, has raised approximately US$40 million to expand food supply chain infrastructure in East Africa. The capital raise includes a US$26 million Series B equity round led by the Private Infrastructure Development Group through its InfraCo investment arm, alongside Oikocredit and FMO. Existing shareholders ARAF, Goodwell, Africa Eats, and FINCA also reinvested, while the Schmidt Family Foundation provided debt funding.
Funding Composition and Strategic Goals
The Series B equity component attracted participation from development finance institutions and existing backers, reinforcing confidence in the company's commercial model. The broader package combines equity with debt from the Schmidt Family Foundation and enables EAF to expand processing, storage, logistics capacity, and its digital platform. EKTA Partners acted as the exclusive financial advisor for the transaction, which completed after competition and regulatory clearances in COMESA, the EAC FCC in Tanzania, and the ZFCC in Zanzibar.
Addressing Post-Harvest Food Loss
In Kenya and Tanzania, up to 40% of food produced is lost before reaching consumers, with most loss occurring after harvest due to gaps in aggregation, grading, storage, and transport. EAF sources directly from more than 28,000 registered smallholder farmers, aggregates and processes their produce, and delivers it to more than 10,000 urban retailers. The company currently reduces food loss across its own network by one third and markets products under brands that include Onja and Golden Banana.
A Leadership Perspective on Infrastructure
Elia Timotheo, Founder and Chief Executive Officer of East Africa Foods, described the company's work as building the missing layer between smallholder farms and urban shelves. He said that losing one third of harvested food is not a farming problem but an infrastructure problem that is solvable. According to Timotheo, the investment will allow EAF to improve and scale its sourcing network, fleet, storage, and technology.
Farmers, Retailers, and Climate Resilience
The new funding will support EAF's ambition to reach 100,000 smallholder farmers over the next few years, with women expected to account for 45% of those beneficiaries. It will also extend training in climate-smart production methods and expand the digital systems that connect farmers, branches, and retailers in Tanzania and new markets. By strengthening its presence in Tanzania and expanding into Kenya, EAF aims to give farmers more predictable incomes and urban retailers better quality control and traceability.
Investor Views on Regional Impact
Claire Jarratt, PIDG Head of Investment Management for InfraCo, said EAF's model aligns with PIDG's mandate to deliver inclusive, climate-resilient growth in its operating countries. Samuel Kibiri, Senior Equity Officer at Oikocredit, added that investments in aggregation, storage, processing, and distribution can reduce food loss and strengthen food security for urban populations. Both investors highlighted the potential for improved smallholder incomes and more resilient regional food systems.
Commercial Viability and Sector Momentum
Peter Byrde, Director Private Equity at FMO, noted that logistics, storage, processing, and digital investments have already helped reduce food loss and improve market access for smallholder farmers. He said FMO supports EAF's next phase because the company demonstrates a scalable and commercially viable model for agri-logistics. The transaction is expected to catalyze greater private sector investment into the sector and pave the way for increased commercial funding.
East Africa Foods is using the new capital to build African-owned and African-operated food supply chain infrastructure that can withstand climate shocks. By linking thousands of smallholder farmers to urban markets through formalized systems, the company aims to reduce food waste, stabilize prices, and raise rural incomes. The Series B round signals growing investor recognition that supply chain infrastructure is central to food security and economic resilience in East Africa.