Project detail - EA Foods Limited

Who is our prospective customer?

EA Foods Limited (“East Africa Foods”, “EAF” or the “Company”) is a food logistics and distribution company in Tanzania, leveraging technology to optimize the fresh fruit and vegetable supply chain. EAF sources produce from over 8,800 smallholder farmers and supplies mostly to informal retailers, but also shops, restaurants and supermarkets in larger cities. The Company is developing an integrated platform, which optimizes the supply chain for selected crops (mainly potatoes and bananas) that are both high in demand and domestically grown, thus improving quality and reducing food waste.

What is our funding objective?

The proceeds of the investment will be used to support the Company’s growth needs, helping to fund its operations and capital investments in logistics infrastructure and software development.

Why do we want to fund this investment?

EAF’s activities support FMO’s objective to benefit smallholder farmers and reduce food waste. The Company focuses on Tanzania’s fragmented food value chains and leverages technology and automation to improve logistics and distribution services, reduce food waste, increase farmer income and improve the quality of the produce for the consumer.

What is the Environmental and Social categorization rationale?

This investment is E&S categorized as B due to the potential limited adverse environmental and social (E&S) risks and/or impacts that are generally site-specific, largely reversible and readily addressed through mitigation measures. The investment mainly triggers IFC Performance Standard 2 on working conditions through the employment of casual labor. EAF employs around 400 FTE casual workers in the peak season. The Company, supported by existing investors, has developed an Environmental and Social Action Plan (ESAP) to mitigate E&S risks and leverages IoT-driven management systems to enforce its Health & Safety policies on e.g. long-haul transportation.