Finnfund Invests in Agricultural Technology in Madagascar

Finnfund, a Finnish development financier, has partnered with Belgian BIO to invest EUR 7.5 million in JTF Madagascar SARL, a company specializing in sustainable agriculture in Madagascar. The investment targets an increase in local agricultural productivity, which currently lags due to a lack of modern technologies.

The funds will be directed towards enhancing the domestic production of corn and soybeans, primarily used for animal feed, thereby reducing import dependency. Additionally, the investment seeks to improve the sustainability of essential oil extraction processes, a key export product for the company. JTF Madagascar operates approximately 8,000 hectares in the Ihorombe Region, utilizing rainfed agriculture for food crops and drip irrigation for essential oils.

JTF Madagascar, also known as Tozzi Green, holds a significant position as Madagascar's largest producer of corn and soybeans. A portion of its harvest is supplied to the UN World Food Program. The company also contributes to local economies by creating formal employment for hundreds of seasonal workers and supports smallholder farmers.

This investment marks Finnfund's first direct engagement in Madagascar. The company expressed confidence that the application of modern agricultural technology by JTF Madagascar will significantly increase productivity and bolster food security within the country.