Tanzanian spice growers to gain from Horizon Group's $5m expansion loan

Josephine Christopher is a senior business journalist for The Citizen and Mwananchi newspapers

Mwananchi Communications Limitted

Iringa. Spice farmers in Tanzania are poised to see higher earnings and improved livelihoods thanks to a fresh $5 million loan injection into Horizon Group Africa, a key player in the continent's spice processing sector.

According to the statement Horizon Group, which operates facilities in Tanzania, Nigeria, and Madagascar, it plans to use the funds primarily for working capital needs, including the purchase of raw materials from local farmers.

The funding, provided by Aavishkaar Capital's Global Supply Chain Support Fund (GSCSF) in partnership with Germany's KfW Development Bank, will enhance processing capabilities and expand exports, directly benefiting growers of high-value spices like cloves, cinnamon, and turmeric.

The loan marks the fourth African investment from the $250 million GSCSF, aimed at bolstering sustainable supply chains across the global south.

Horizon group's chief executive Mr Jomy Antony, emphasized the transformative potential: "We are pleased to partner with Aavishkaar Capital as we embark on the next phase of our growth journey.

He said: "Their experience in scaling businesses, strengthening governance systems, enabling access to global customer markets, and unlocking capital will be invaluable as we build Horizon into the leading African spice processing company."

Tanzania, renowned for its favorable climate and soil that support spice cultivation, has long been a powerhouse in producing cloves and cinnamon, contributing significantly to the country's agricultural exports.

Horizon's operations in the region focus on aggregating and processing these crops, reducing post-harvest losses and ensuring quality standards that meet international buyers' requirements.

Director at Aavishkaar Capital Darren Lobo expressed his delight to partner with Horizon Group's management team to build one of Africa's $largest spice processing companies.

He said: "We deeply value Horizon’s impactful farm extension works with more than 3,000 farmers across remote regions of Tanzania, Madagascar, and Nigeria, as well as the strong, long-term relationships they have cultivated with top global customers over the past 5–8 years."

Spices are one of Tanzania’s hidden treasures, with Zanzibar long known as the “Spice Island.” Yet, despite this heritage, the sector has lagged in modernization and global competitiveness. The Horizon investment could be a turning point, especially in raising value addition at source.

Head of Division at KfW, Dr Markus Aschendorf said their investment in the Horizon Group through the Global Supply Chain Support Fund reflects KfW’s commitment to strengthening sustainable supply chains across Africa and in Asia.

"We believe that purpose-driven capital can catalyse meaningful ESG transformation while unlocking inclusive growth. Horizon’s work in ethical sourcing and regenerative agriculture aligns with our vision for resilient, ecologically conscious businesses that are ready to meet global standards and thrive in international markets," he said.

Founded in 2006 in Nigeria, Horizon pivoted in 2017 to specialize in high-value spices, leveraging Africa's competitive advantages in production. In Tanzania, the company's year-round sourcing mitigates seasonal risks, ensuring steady income for farmers.