CDC Group, the UK’s development finance institution and impact investor, has announced a US$100mn debt commitment to ETG, an agricultural conglomerate connecting smallholder farmers to global markets to support over 550,000 farmers in Africa
The debt commitment will support the growth of ETG’s food and agriculture business, and it will help ETG strengthen food value chains by expanding its logistic networks, boosting agriculture yields and the production of staple foods such as grains, rice and cocoa.
ETG has long standing relationships with over 550,000 smallholder farmers across Africa hence helps to significantly improve their livelihoods by providing consistent future demand for their produce through access to regional and global markets. ETG also provides warehousing and distribution centres giving farmers flexibility to store and sell their produce at the optimal time, thereby increasing their income potential substantially.
CDC will support ETG’s ongoing efforts towards implementation and alignment with international environmental and social standards with enhanced focus on supply chain risk management, safeguarding work and procedures. ETG has strong ESG credentials, recently launching a data driven agricultural intensification pilot project in Kenya to improve farmer productivity while enhancing the environmental risk management and climate resilience of ETG Kenya’s food staples.
Anish Jain, chief treasury officer of ETG, said, “We are extremely grateful for the support of CDC Group. ETG is excited to expand its existing presence in various markets and further offer support to communities across our extended footprint. ETG puts special focus on the development of smallholder farmers, linking them with international markets by utilising its proprietary end-to-end supply chain.”
Tony Morgan, managing director and head of Private Equity and Corporate Debt at CDC Group, said, “Agriculture and rural development are vital engines that are accelerating Africa’s economic transformation and meeting global food and health needs. As these sectors continue to evolve and grow exponentially, this shift will be bolstered by a diversified, technologically-enabled, and commercially-oriented agro-industry one that connects Africa’s markets regionally and internationally.”