Horizon Group Africa secures US$5M loan to boost spice supply chains

NIGERIA – Horizon Group Africa has secured a US$5 million loan from Aavishkaar Capital, in partnership with Germany’s state-owned development bank KfW, to strengthen its spice processing operations and build more resilient supply chains across Nigeria, Tanzania and Madagascar.

The financing, announced in a company statement, comes through the US$250 million Global Supply Chain Support Fund (GSCSF). 

It will provide Horizon with working capital to purchase raw materials and scale up farmer outreach, enabling the company to meet the growing demand from Europe, Asia, and the United States.

Founded in Nigeria in 2006, Horizon has developed into one of Africa’s leading aggregators and processors of high-value spices, including ginger, turmeric, cloves, cinnamon, cardamom and black pepper. 

Since 2017, the company has focused exclusively on spice sourcing and exports, leveraging the continent’s favourable climate and fertile soils to supply both conventional and organic markets. Rising global demand for organic food products has added further momentum to its expansion plans.

Chief Executive Officer Jomy Antony stated that the partnership marks a significant turning point in Horizon’s growth journey. 

“Their experience in scaling businesses, strengthening governance systems, and unlocking capital will be invaluable as we build Horizon into the leading African spice processing company,” he noted.

Horizon currently maintains direct relationships with over 3,000 farmers across the three countries, providing training in sustainable practices, supporting organic certification, and organising growers into cooperatives to improve traceability. 

With the new funding, the company aims to triple that network to 10,000 farmers within three years.

For Aavishkaar Capital, the investment marks its fourth in Africa under the GSCSF, following previous commitments to Hela Apparel, Balaji EPZ and Privamnuts. 

Darren Lobo, Director at Aavishkaar Capital, emphasised Horizon’s role in bridging long-standing gaps between smallholder farmers and international buyers. 

“Horizon is directly sourcing from these farmer groups, ensuring higher value is transferred to the farmer rather than being lost in the value chain,” he said, adding that the management team brings “over 80 years of combined expertise” in spice cultivation and global trade.

KfW’s Head of Division, Dr Markus Aschendorf, said the investment highlights Germany’s commitment to sustainable and ethical sourcing. 

“Horizon’s work in regenerative agriculture aligns with our vision for resilient, ecologically conscious businesses ready to thrive in international markets,” he stated.

Africa’s spice industry has long been constrained by limited processing capacity and weak market linkages. Despite being the world’s second-largest producer of ginger, Nigeria captures less than 3 per cent of global export revenues, according to FAO and World Bank data. 

By building stronger supply chains and upgrading its processing facilities, Horizon aims to capture more value locally and expand into higher-margin applications, such as pharmaceutical and personal care ingredients.

As the company transitions from a family-owned business to a more formal corporate structure, the latest funding signals a push to reposition Africa’s spice sector on the global stage, linking smallholder farmers with lucrative export markets while supporting sustainable agricultural practices.

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