DEG signs $40m funding agreement with African agribusiness group

German development financier DEG will provide long-term working capital funding of $40 million to ETG Group, a large and diversified agricultural commodity trader and supply chain manager with most of its footprint in Africa.

Since its establishment in 1967 in Kenya, ETG has emerged into one of the largest independent agricultural commodity supply chain managers in Africa. The group owns and manages a vertically integrated agricultural supply chain with operations spanning from procurement, processing, warehousing, distribution and merchandising. ETG operates and manages more than 460 warehouses and operates over 120 processing plants.

ETG plays a key role in various agricultural value chains (e.g. cashew nuts, sesame seeds, pulses). In Africa, it uses its own supply chain infrastructure to source over 80% of its agricultural commodities at farm-gate.

The DEG facility will allow ETG to stabilise and grow its business.

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