USD 5 MILLION FACILITY TO BOOST TANZANIA SPICE FARMERS’ EXPORT CAPACITY

Employees sorting and grading dried ginger at the Horizon Group Africa plant in Kaduna, Nigeria. Spice farmers in Tanzania, Nigeria, and Madagascar are set to benefit from a USD 5 million facility provided to Horizon Group to boost the production and processing of various spices for export.

Dar es Salaam, Tanzania – Spice farmers in Tanzania are set to strengthen their position in the global market, thanks to a USD 5 million (TSh 12.5 billion) facility that will enhance organic production, processing, and certification.

Tanzania, renowned for producing cloves, black pepper, cinnamon, cardamom, and ginger, faces growing demand for its spices in Europe, Asia, and the United States. However, many farmers struggle with maintaining organic certification, a crucial requirement for accessing premium export markets.

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ADDRESSING CERTIFICATION CHALLENGES

Without proper certification, spice processing companies risk losing access to premium markets, undermining the economic viability of organic farming and impacting farmers’ livelihoods. The new facility is designed to close this gap by supporting both organic and conventional spice production in Tanzania, Nigeria, and Madagascar—Africa’s top spice-producing nations.

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HORIZON GROUP AFRICA’S ROLE

The investment will be implemented by Horizon Group Africa, a spice processing and export company headquartered in Nigeria. The firm works with over 3,000 spice growers across its facilities in Tanzania, Nigeria, and Madagascar, aggregating and processing high-value spices such as ginger, turmeric, cloves, cinnamon, cardamom, and black pepper.

The funding will boost Horizon’s working capital, enabling the purchase of raw materials and fulfilling growing orders from international clients.

“We are pleased to partner with Aavishkaar Capital as we embark on the next phase of our growth journey. Their experience in scaling businesses, strengthening governance systems, enabling access to global markets, and unlocking capital will be invaluable as we build Horizon into the leading African spice processing company,” said Jomy Antony, CEO of Horizon Group, in a statement released in Nairobi.

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AAVISHKAAR CAPITAL AND KfW BACKING

The USD 5 million facility was provided by Aavishkaar Capital through its Global Supply Chain Support Fund (GSCSF), a USD 250 million fund focused on investments in Africa and Asia. The fund is supported by KfW, Germany’s state-owned investment and development bank, with a mission to deliver strong Environmental, Social, and Governance (ESG) outcomes alongside commercial returns.

• Darren Lobo, Director at Aavishkaar Capital, noted Horizon’s “80 years of combined expertise in spice growing and trading” and praised its strong global customer relationships and impactful work with farmers.
• Dr. Markus Aschendorf, Head of Division at KfW, emphasized the bank’s commitment to sustainable supply chains, highlighting Horizon’s ethical sourcing and regenerative agriculture practices as aligned with global sustainability standards.

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BOOSTING FARMERS’ CAPACITY

The growing global awareness of organic food has created a lucrative market for organic spices, enabling Horizon to command better prices and margins. To meet demand, the company provides farmers with training in good agricultural practices, organizes them into cooperatives, and ensures full traceability and certification.

Tanzania’s fertile soils and diverse climates make it an ideal spice-growing hub. Initiatives like the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) are further supporting the industry by mobilizing private sector investment and coordinating efforts.

With most spice production handled by smallholder farmers, these developments are expected to significantly improve livelihoods, strengthen Tanzania’s spice sector, and expand its role in the global market.

Sun-drying of ginger at Horizon Group Africa’s plant in Kaduna, Nigeria.