New Sources of Revenue for Avocado Farmers in Tanzania

Africado is an agricultural investment that has succeeded in commercializing a traditionally low-value crop. New techniques and agricultural training are creating jobs and new sources of revenue for small-scale avocado farmers in Tanzania. Norfund’s investment enabled them to expand production and reach export markets.

Background

Established in 2007 around the Kilimanjaro area in Tanzania, Africado has developed and grown as a business from start up to becoming the largest fruit exporter in Tanzania, producing and exporting Hass avocado to the EU. The company works with over 2000 small-scale outgrowers. In 2009 Norfund committed 26 MNOK and provided 40% of the equity required for the project.

Poverty Reduction Strategy

The investment in Africado is consistent with the Government of Tanzania’s poverty reduction strategy.

Reducing Vulnerability

The farm is generating important export revenues to Tanzania. Avocados were introduced as a new agricultural product that provides sales revenues in an area that previously was dominated by coffee-growing. In view of the fluctuations in the coffee prices, a broader-based industrial structure reduces the vulnerability of the farmers.

Development Effects