KENYA – The Export Trading Group (ETG), a Kenya-based agricultural commodities trader, is set to receive US$128 million (Sh12.8 bn) funding from financial institutions to enable the firm finance its operations.
Lead by the United Bank of Africa (UBA) Bank and other local, regional and global banks, the credit facility will be utilised to improve the company’s grain exports as well as fertiliser imports.
In a statement, ETG’s Chief Treasury Officer Anish Jain says the revolving 12-month facility will serve as working capital aimed at increasing its ability to source and deliver quality farm inputs across the continent, reports The Capital.
“We value the partnership with UBA.
“This facility enhances ETG’s contribution to sustainable employment, generation of foreign exchange for the economy, ensures income security for local farmers, and assists ETG’s goal to sustain global food security,” Jain said.
ETG buys and sells a wide range of commodities, including maize, pulses and fertilizer and has operations in 40 countries where it buys, stores, processes and/or manufactures various products.
In 2017, Export Trading Group purchased and distributed nearly 6.6 million tons of staples in its main operating markets.
It is also actively present in North America, India, China and South East Asia. Mitsui & Co. Ltd currently holds shareholding in ETC Group which demonstrates strong confidence and potential of ETG.
UBA East and Southern Africa Chief executive, Emeke Iweriebor, says the move also comes as a boost to the Kenyan government agenda especially on agriculture, which focuses on increasing food security and nutrition.
“As a Pan-African Financial institution, this collaboration is in line with our strategic intent of supporting Kenya’s economic development; through financing various initiatives that further lend support to the country,” Iweriebor said.
The International Finance Corporation (IFC), an international financial institution, had also committed to inject US$40 million (Sh4 billion) in funding to the company.
The funding from IFC was aimed at supporting ETG agri-commodity trader’s export of cash crops and food grains, storage, and import of fertiliser in sub-Saharan Africa.
In addition, it was also meant to improved market integration by facilitating intraregional and south-south trade for commodities and enhancing the connectivity of real sector firms into value chains.