Farming and agriculture play a crucial role in Tanzania’s society, contributing around a quarter of the country’s GDP, and employing two-thirds of the population. In spite of the sector’s importance, it faces ongoing systemic issues, from food waste to liveable wages to climate disruption.
Transforming Tanzania’s agriculture
Tanzanian-based EA Foods is rising to meet these challenges, transforming the agricultural value chain and reducing post-harvest losses by aggregating produce from smallholder farmers nationwide and delivering it directly to urban retailers. Their approach ensures higher incomes and more stable livelihoods for smallholder farmers.
“The mission behind East Africa Foods is transforming lives of small holder farmers and retailers by giving them access to market,” explains CEO and Founder Elia Timotheo. “We do that by using technology that ensures transparency and reduces service losses in the value chain.”
A real difference for farmers
To demonstrate EA Foods’ impact, Elia shared the story of a local smallholder potato farmer named Agnes: “When we first met her three years ago, she was not able to sell her produce to the market. Even when she had that opportunity, she had to sell them through middlemen, and she always ended up losing money. And so when we met her, we were able to transparently show how we operate as a business and train her to increase her productivity. Three years later, her income more than tripled through increasing the productivity of the potatoes and also [EA Foods’] transparency, pricing, and lack of middlemen.”
Over 28,000 smallholder farmers (nearly 40% of whom are women) take advantage of EA Foods’ services, and have similar experiences to Agnes. Combining the company’s cold-chain distribution infrastructure with targeted training programs to enhance farmers’ capabilities, crop quality and yields, increases incomes and provides predictable cash flows to farmers and vendors.
This approach has enabled EA Foods to move from strength to strength: since Goodwell first invested, they have expanded their farmer network by 1,493%, their vendor network by 914%, and are serving 788 supermarkets.
“I believe that Africa as a whole needs access to capital”
Elia Timotheo – Founder & CEO EA Foods
Africa needs capital
In addition to investments from investors like Goodwell, EA Foods has driven their expansion via the technology they are integrating into the market. But that can only get so far without further financial support: “I believe that Africa as a whole needs access to capital,” Elia observed. “There’s a lot of capital outside of Africa but there’s a limited access to that, and I believe once that is resolved there will be more solutions towards addressing some of the challenges we have.”
Agriculture has long been a focus sector of Goodwell’s investment thesis. It is the cornerstone of Africa’s economy and provides multiple opportunities to make meaningful impact. EA Foods is a real success story within our uMunthu portfolio, proving what is possible by connecting technology and system changes with smallholder needs. We are currently exploring the agricultural sector deeper than ever before, building new paths towards sustainable, climate-smart growth.
The ripple effect of EA Foods’ impact
What inspires us – and Elia – to keep exploring, keep innovating, keep improving, is the tangible impact that companies like EA Foods have on their customers and communities.
“One… that really makes me very happy is when I get feedback from farmers that we have improved their lives, we have changed their lives,” Elia told us with a smile.
“They are able to do positive things like taking their kids to school, build houses, expand their businesses. That is what really triggered me from the very beginning: how could I create a business that would inspire an increase the livelihood of smallholder farmers in the continent. So if I hear anything towards that direction, it makes me believe that not just myself, but the entire team and the company hasreally been able to deliver that vision to the farmers.”
