The African Development Bank Group (AfDB) has announced a $75 million financing package to support Export Trading Group (ETG), a Mauritius-based conglomerate with extensive operations across Africa. ETG’s diverse portfolio covers sectors such as agricultural inputs, logistics, supply chain management, digital transformation, and energy.
Breakdown of the Financing Package
The comprehensive financing includes $65 million from AfDB’s own resources and an additional $10 million in concessional co-financing from the Agri-Food Catalytic Financing Mechanism (ACFM). The ACFM, supported by Canada’s Department of Foreign Affairs, Trade, and Development, is dedicated to empowering gender-inclusive and underserved agricultural small and medium-sized enterprises (SMEs) in Africa.
Targeting Agricultural and Supply Chain Development
The funds will be channeled into ETG’s Sustainable Linked Loan facility, focusing on strengthening its core value chain assets. This financing will enhance ETG’s processing and packaging capabilities, improve warehouse infrastructure, and provide essential agricultural inputs like fertilizers to farmers. The initiative will initially target 14 African countries, including Ghana, Kenya, Nigeria, Ethiopia, and Mozambique, with potential expansion to up to 28 countries based on regional needs.
Sustainable Development Goals and Performance Indicators
The Sustainable Linked Loan facility integrates annual sustainability performance indicators centered on:
- Decarbonization and reforestation
- Zero deforestation initiatives
- Farmer support services
- Gender empowerment and inclusion
Non-compliance with these sustainability targets will lead to direct financial consequences, ensuring ETG remains committed to its environmental and social objectives.
Empowering Smallholder Farmers and Women
ETG aims to engage 600,000 smallholder farmers by 2027, with a specific focus on empowering women, who are expected to make up 25% of the beneficiaries. The project includes training on sustainable agricultural practices, expanding farmers‘ access to resources, and promoting food security. The initiative also aims to bolster exports and foster intra-regional trade within African economic blocs such as ECOWAS, SADC, and EAC.
Dr. Beth Dunford, Vice President for Agriculture, Human, and Social Development at AfDB, highlighted the initiative’s impact:
“We are excited to expand our partnership with ETG to strengthen women’s economic development in Africa. Access to finance and agricultural training will significantly contribute to food security and sustainable growth.”
Alignment with AfDB’s Strategic Priorities
This financing aligns with AfDB’s ‘High 5’ priorities, particularly:
- Feed Africa
- Integrate Africa
- Improve the Quality of Life for the People of Africa
It also supports the Bank’s Ten-Year Strategy (2024–2033), focusing on transforming Africa’s agricultural sector into a commercially sustainable industry.
Promoting Sustainable Agriculture and Regional Trade
Richard Ofori-Mante, Director of the Agricultural Finance and Rural Development Department at AfDB, emphasized the transaction’s broader significance:
“This initiative not only promotes sustainable practices within ETG’s operations but also amplifies their influence across the supply chain, contributing substantially to the Sustainable Development Goals.”
By investing in ETG, AfDB aims to enhance agricultural productivity, support smallholder farmers, and foster regional trade, ultimately transforming Africa’s agriculture into a driver of economic growth and sustainability.
Source: InnovationVillage