Impact Fund Denmark provides $22.5m loan to agribusiness group
ETG is one of Africa’s largest agribusiness groups, operating in 32 African countries.
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Impact Fund Denmark is providing a loan of $22.5 million to the African agribusiness group ETG.
The investment is structured as a sustainability-linked loan, with the interest rate reduced if ETG meets a series of specific targets. These include increasing support for women farmers, expanding advisory services for farmers, and reducing deforestation and carbon emissions.
ETG is one of Africa’s largest agribusiness groups, operating in 32 African countries. The company purchases crops directly from smallholder farmers and supplies them to global markets. At the same time, ETG provides fertiliser, seeds and agricultural advisory services to farmers.
“Many farms across the African continent have enormous potential, but too much value is lost because the farmers do not have access to the right markets and financing. By supporting ETG, we are backing a company that can make a tangible difference for farmers while strengthening local value chains,” says Otto Vinther, managing director and co-head of sustainable food systems at Impact Fund Denmark.
Impact Fund Denmark is providing the financing alongside a number of European and African development finance institutions, including FMO, TDB, Finnfund and CDP. The total loan amounts to $600 million.
“Agriculture employs millions of people across Africa, but too much value is lost when farmers lack access to logistics, financing and markets. ETG is addressing this challenge at scale. What makes this investment particularly compelling is that the loan is structured to ensure that ETG places special emphasis on areas such as supporting women farmers, expanding advisory services and reducing deforestation,” noted Søren Peter Andreasen, deputy CEO of Impact Fund Denmark.
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