DFCD to support climate-resilient agri-tech solutions in East Africa

In East Africa, smallholder farmers face mounting challenges from climate change, post-harvest losses, and limited access to markets and technology. EA Foods, a tech-enabled fresh produce aggregator and distributor, aims to address these challenges. By scaling its operations, reducing food waste, and delivering climate-resilient solutions, EA Foods has a vision to build a future where farmers thrive, food systems are efficient, and communities benefit. With support from the DFCD Origination Facility, EA Foods is laying the groundwork for expanded regional impact, enhanced farmer livelihoods, and significant reductions in CO₂ emissions.

Supporting growth and de-risking

The Dutch Fund for Climate and Development (DFCD) Origination Facility’s Investment Committee has approved a proposal to support EA Foods Ltd., a tech-enabled aggregator and distributor of fresh produce in Tanzania, in preparing an investment proposal to expand its operations across East Africa and introduce new value-added product lines.

This investment proposal will enable EA Foods to scale its innovative Farmer Management System (FMS) and Distribution Management System (DMS) to enhance efficiencies, reduce food waste, and improve the resilience of its smallholder farmer supply chain. The proposed development is intended to de-risk planned investments in Tanzania and into regional market expansions, rice milling, and maize value addition.

SNV's commitment

In light of the foregoing, SNV intends to sign a EUR 355,000 grant funding agreement with EA Foods Ltd. to support the final development of the investment proposal. Additionally, SNV will provide a technical assistance package to enhance EA Foods’ environmental, social, and governance (ESG) systems and promote gender equality and social inclusion (GESI) through targeted activities.

This project is expected to generate transformative impacts, including the reduction of post-harvest losses from 40% to 5%, avoidance of 645,000 tons of CO₂ emissions, and improved climate resilience for 25,000 smallholder farmers by 2026. Through its tech-enabled operations, EA Foods will strengthen market linkages, enable access to climate-resilient inputs, and increase farmer incomes.

The grant will be used for undertaking:

1. Regional Expansion: Conducting an in-depth market study for Uganda to assess entry strategies for Kampala and surrounding regions.

2. Business Line Expansion: Developing market studies for rice milling and maize value addition in Tanzania and neighboring countries.

3. Technology Development: Upgrading the Farmer Management System (FMS) to onboard 25,000 farmers and provide training in climate-smart agriculture.

4. Transaction Advisory: Restructuring EA Foods' logistics business as a separate legal entity to enhance operational efficiency and attract investors.

5. Pilot Projects: Testing value addition projects for rice and maize in Tanzania and Kenya, along with small-scale trials of geographical expansion plans.

6. ESG and GESI Assessments: Enhancing environmental and social management systems and conducting targeted GESI assessments to identify opportunities for inclusivity and equity.

Outcomes of the Origination Project:

• Expanded access to climate-resilient inputs and practices for smallholder farmers.

• Enhanced post-harvest handling and reduced food waste across the supply chain.

• Strengthened digital platforms to support scalable and inclusive farmer engagement.

Expected outcomes of the Investment Proposal:

• 645,000 tons of CO₂ emissions avoided over five years.

• Sustainable practices adopted across 25,000 farms by 2026.

• Improved incomes and livelihoods for smallholder farmers, with a focus on marginalized groups.

Elia Timotheo, CEO, EA Foods Ltd, said: "This collaboration with SNV and DFCD represents a milestone in our journey to scale operations, improve farmer incomes, and deliver sustainable solutions to East Africa’s food systems. We are excited about the opportunity to drive meaningful change."

Tigere Muzenda, Business and Investment Expert, SNV-DFCD, said: "EA Foods' commitment to building a climate-resilient and inclusive food supply chain aligns well with DFCD's mission to promote sustainable and climate-smart agriculture. We look forward to supporting EA Foods in achieving these impactful objectives."

About the DFCD

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.

About SNV

SNV is a global development partner deeply rooted in the African and Asian countries where we operate. With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.

About EA Foods Ltd.

EA Foods Ltd. is a Tanzania-based tech-enabled aggregator and distributor of fresh produce. Founded in 2013, EA Foods connects smallholder farmers to urban markets through an integrated farm-to-market tech platform, reducing post-harvest losses and promoting climate-smart agricultural practices.

For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:

SNV - Dutch Fund for Climate and Development: dfcd@snv.org