ETG expands sustainability-linked loan to US$600M to boost African agriculture
The expanded financing will bolster agricultural supply chains and infrastructure across Africa and Asia, thereby enhancing food security.
AFRICA – ETC Group has expanded its sustainability-linked syndicated loan to US$600 million, strengthening its financing base as it scales agricultural operations across Africa and parts of Asia.
The facility, arranged by FMO and the Trade and Development Bank Group, will provide working capital to support agricultural value chains. This includes access to markets, inputs, infrastructure, training, and advisory services for smallholder farmers.
The facility was initially signed at US$394 million by FMO, TDB Group, DEG, FinDev Canada, the OPEC Fund for International Development, and Proparco. It has since grown to US$600 million after FinDev Canada increased its commitment and new investors joined.
New investors include the Asian Development Bank, Cassa Depositi e Prestiti, Finnfund, Impact Fund Denmark, and OeEB. The financing covers commodities including grains, pulses, oilseeds, and fertilizers, supporting ETG’s role in connecting farmers with regional and international markets.
The sustainability-linked structure ties the loan’s interest margin to ETG’s performance against agreed environmental and social targets. The facility has already exceeded several impact objectives related to deforestation, reforestation, and the number of farmers receiving extension services, including women farmers.
Huib-Jan de Ruijter, Co-CIO at FMO, said ETG plays an important role in connecting African smallholder farmers to markets, inputs, and services, while the financing encourages measurable environmental and social progress.
Michael Awori, TDB’s Trade and Development Banking chief executive for the Eastern and Western African region, said the facility strengthens the institutions’ longstanding partnership with ETG and supports farmers, agribusinesses, and traders driving Africa’s regional food systems.
Founded in Kenya in 1967, ETG has grown into a global agricultural group with operations in more than 45 countries across six continents. Its businesses span agricultural inputs, chemicals, logistics, processing, food and ingredients, energy, metals, technology, and supply chain optimization
ETG operates a vertically integrated agricultural supply chain covering procurement, processing, warehousing, distribution, and merchandising. The company owns and manages more than 300 warehouses and over 70 processing plants and has invested more than US$300 million in supply chain infrastructure in Sub-Saharan Africa over the past decade.
The expanded financing will bolster agricultural supply chains and infrastructure across Africa and Asia, thereby enhancing food security.
Finally, by integrating sustainability goals, the initiative aims to build climate resilience and improve the livelihoods of over one million producers within the global trade network.
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