FMO, FinDev Canada and OeEB sign loan facility for African agricultural business
FMO, FinDev Canada, and OeEB (the Development Bank of Austria) announced a $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. The syndicated facility will indirectly support an estimated 600,000 smallholder farmers and the communities where they live and work, while also contributing to more sustainable and climate-resilient agricultural practices across the continent.
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.
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 26 countries, including several least-developed countries.
Pieternel Boogard, director of agribusiness, food and water at FMO, the Dutch entrepreneurial development bank said, “We are very pleased to strengthen our commitment towards ETG’s mission and empower smallholder farmers across Africa for a brighter future. 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 wellbeing 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.”
“The growth of ETG has been impressive and its contributions to the transformation of African agriculture equally so,” said Paulo Martelli, chief investment officer of FinDev Canada. “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.”
“We are proud to join forces with ETG who has played a crucial role in agricultural development in Africa over the past decades,” added 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 contribute to food and job security for populations in need.”
Anish Jain, ETG’s chief treasury officer said, “We are fortunate to have like-minded 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 emphasise our efforts and augment our impact.”
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