The loan will indirectly support an estimated 600,000 smallholder farmers and their communities and contribute to more sustainable and climate-resilient agricultural practices.
OeEB together with Dutch FMO and FinDev Canada announced a USD 115 million syndicated loan facility that will allow ACF, one of the main trading companies of Export Trading Group (ETG) to improve and expand its operations in Africa, with FMO acting as lead arranger.
ETG was established in 1967 as an independent African-based commodity trader. 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. 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.
"We are proud to join forces with ETG who has played a crucial role in agricultural development in Africa over the past decades", says Sabine Gaber, Member of OeEB’s Executive Board. "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."
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."
Enabling market growth
The syndicated loan facility will allow ETG to strengthen and expand its operations across the agricultural value chain. Improved processing capacity and logistics 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.
Development Finance Institutions and COVID-19
DFIs such as OeEB, FMO and FinDev Canada are committed to remaining open for business to serve target regions during the COVID-19 pandemic. Investment will help ensure that liquidity continues to reach developing markets, helping them to recover from the economic and social consequences of this crisis.