Empowering Smallholder Farmers: EDFI Management Company Invests European Union funds in Zanj Spice Limited to Protect Forests and Boost Sustainable Agriculture in Zanzibar
Supported by the European Union (EU), through the AgriFI funding facility, this initiative aims to enhance livelihoods and promote environmentally sustainable practices.
EDFI Management Company, an EU Fund implementer, announced today a EUR 1 million loan investment in Zanj Spice Limited, an organic-certified spice enterprise dedicated to fair-trade, sustainable, and transparent commerce, under the brand 1001 Organic. This partnership, part of the AgriFI Tanzania Country Window supported by the EU, aims to create lasting positive impacts on local communities, the environment and the smallholder-driven spice industry.
Through a EUR 1 million senior loan from AgriFI, Zanj Spice Limited will finance the construction of a new processing facility in Zanzibar and acquire machinery. As the company’s first international loan, this investment will significantly increase its spice processing capacity and expand its sourcing network across Zanzibar and mainland Tanzania.
The anticipated impact of this project includes:
- Economic Empowerment: By integrating smallholder farmers into the spice value chain, Zanj Spice Limited will provide them with access to high standards and reliable markets. This will enhance their financial livelihoods and contribute to economic growth in the region.
- Sustainable Agricultural Practices: The project emphasizes organic production methods, educating farmers on sustainable cultivation practices that protect forest ecosystems. This approach not only improves crop yields but also promotes environmental conservation.
- Community Development: The establishment of additional on-site camps for farmers will facilitate training and resources, fostering a supportive community that encourages collaboration and knowledge sharing among local producers.
- Forest Preservation: By promoting sustainable spice cultivation within forest areas, Zanj Spice Limited is committed to combating deforestation and ensuring agricultural practices align with environmental sustainability
Christine Grau, EU Ambassador to Tanzania:
“Supporting this impactful investment in Zanj Spice Limited as part of EU Funding enhances agricultural productivity in Zanzibar, and it empowers local farmers through sustainable practices that preserve our precious forest ecosystems. By equipping farmers with the knowledge and resources for organic spice cultivation, we are fostering economic growth and environmental stewardship in the region.”
Raphael Flury, CEO of Zanj Spice Limited:
“With support from EDFI Management Company and EU Delegation in Tanzania we will scale our operations, increase the local value-addition and positively impact the standard of living of rural smallholder farmers. 1001 Organic’s commitment to sustainable farming and trade, paired with a state-of-the-art processing unit, supports regenerative practices that protect our forests and enhances the quality of our spices in favour of the food and beverage industry as well as consumers. Together, we can build a resilient agricultural sector that benefits both our farmers and the environment.”
Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company stated:
“Our long-term financing enables Zanj Spice Limited to expand its operations while integrating more farmers into the spice value chain. This investment aligns with our mission of promoting inclusive economic development and environmental conservation, ensuring a brighter future for farmers and their communities in Zanzibar.”
This collaboration between the European Union, EDFI Management Company and Zanj Spice Limited represents a significant step towards creating sustainable agricultural practices, economic empowerment, and environmental conservation in the region, ultimately improving the livelihoods of smallholder farmers while protecting Zanzibar’s rich natural resources.
About:
EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. EDFI MC manages The Agriculture Financing Initiative – AgriFI, which is an impact investment facility funded by the European Union. AgriFI has the mandate to provide medium- to long-term financing for private sector enterprises active in the agri-food value chain, helping to consolidate agriculture production to achieve economies of scale and a stronger presence in markets, bringing increased food security. For more information www.edfimc.eu.
About AgriFI – Tanzania Country Window
A EUR 12 million country window dedicated to sustainably increase the production and incomes of smallholder farmers in Tanzania by investing in private sector enterprises focusing on farmers’ livelihood improvement, with a focus on tea, coffee and horticulture (fruits, vegetables, spices, herbs and seeds). This window also focuses on the less developed regions of the country, creating much needed local jobs. Female smallholders in particular will benefit from the window, as smallholders represent 80% of agricultural producers in Tanzania, and 75% of these are women. More information: https://edfimc.eu/what-we-do/agrifi/tanzania-country-window/
About the EU Delegation to Tanzania
The Delegation of the European Union to Tanzania and the East African Community is a key actor in the relations between the European Union and Tanzania as well as the East African Community. The EU has set out the Global Gateway, a new European strategy to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world. Global gateway is implemented jointly under the Team Europe banner, meaning the EU institutions and EU Member States.
