KENYA – Agri Commodities and Finance (ACF), the main trading company of Export Trading Company (ETC) Group has clinched a US$115 million syndicated loan facility from a consortium of Development Finance Institutions (DFIs), to enable it expand its operations across Africa.
The facility was arranged by the Dutch FMO with participation from FinDev Canada and OeEB of Austria, aimed to allow ETG strengthen its operations across the agricultural value chain.
According to FMO, by improving processing capacity and logistics it will lead to less post-harvest crop loss and food waste.
These improvements will not only support the livelihood of existing farmers, but also create an estimated 5,000 new jobs in Sub-Saharan Africa.
With 35% of the jobs to be created in the continent’s least-developed countries and 50% being taken up by women, this will further contribute to SDG 10.
In addition, this working capital loan will support access to critical food supplies across Africa.
“ETG’s impact and success contribute to a stronger African agricultural sector, which will reduce poverty of smallholder farmers in Africa and improve their overall well-being through ETG’s sustainable and climate-smart programmes focused on agriculture and agro-processing.
“We are proud to have arranged this facility along with our fellow DFIs,” Pieternel Boogard, Director Agribusiness, Food, and Water of FMO, said.
This recent funding follows in quick succession to FMO issuing a US$70 million working capital loan to ACF earlier in the year, providing sufficient liquidity to the organization for continuity of operations.
“By participating with other development finance institutions, such as FMO from the Netherlands and OeEB from Austria, we are helping ETG move to the next level of its development.
“The facility will help make agriculture and food production in Africa more efficient, more sustainable, and more beneficial to everyone,” said Paulo Martelli, Chief Investment Officer of FinDev Canada.
ETG was established in 1967 as an independent African-based commodity trader in Kenya.
Since then, it has grown to become one of the world’s largest and fastest-growing integrated agricultural conglomerates with operating entities located in more than 50 countries.
“Supporting smallholder farmers is especially important in light of the ongoing pandemic and growing effects of climate change.”Sabine Gaber – Member of OeEB’s Executive Board
Its activities cover the entire farm-to-table value chain including procurement, warehousing, processing and/or manufacturing of finished food products, transportation, and distribution of fast-moving consumer goods.
ETG owns and operates more than 120 processing plants and over 450 warehouses across the globe, with a storage capacity exceeding 2.5 million metric tonnes.
The Group imports and exports a basket of commodities to and from 49 countries. ETG’s African footprint comprises of 26 countries, including several least-developed countries.
“We are proud to join forces with ETG who has played a crucial role in agricultural development in Africa over the past decades.
“Supporting smallholder farmers is especially important in light of the ongoing pandemic and growing effects of climate change. With this financing we can support agricultural supply chains which contributes to food and job security for populations in need,” said Sabine Gaber, Member of OeEB’s Executive Board.
The financing will indirectly support an estimated 600,000 smallholder farmers and the communities, while also contributing to more sustainable and climate-resilient agricultural practices across the continent.
Anish Jain, ETG’s Chief Treasury Officer, said, “We are fortunate to have likeminded partners such as FMO, FinDev and OeEB that are as passionate about Africa and its people.
“ETG was built on the fundamental of elevating farmers’ livelihoods and bridging supply chain and infrastructure gaps in Africa. This facility will provide ETG with the necessary support to emphasize our efforts and augment our impact.”
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