ETC Group

ETG

In brief

Export Trading Group (ETG) is a large and diversified agricultural commodity trader and processor with most of its operations in Africa. ETG has about 70 direct subsidiaries serving more than 40 countries on five continents. ETG is one of Africa's largest players in agribusiness trading and processing. Several major DFIs are funding its operations, and it is widely considered one of Africa's most bankable agribusinesses. DEG is arranging a USD 150 million senior unsecured long-term working capital facility for ETG to improve the balance sheet structurally and enhance trading growth. The DEG-arranged facility will be contractually earmarked for Africa, and Finnfund’s proceeds will be used in Tanzania, Malawi, and Mozambique in five ETG subsidiaries.

Main development impact

ETG’s operations alleviate some of the most fundamental problems of African agriculture. It improves market access to local farmers by sourcing commodities from rural areas. It increases competition and thereby improves the prices and income of farmers. It improves access to critical inputs such as fertilisers and seeds, which help farmers to increase their yields. Its private extension services, training the farmers, support the (often) nonfunctional and inefficient government services. ETG’s infrastructure network of warehouses decreases post-harvest losses, which are the greatest in Africa. ETG’s vehicle fleet and intra-Africa trade decrease the market volatility and improve market integration. ETG’s operations can also be estimated to create export revenues to Africa (although it also imports inputs and commodities to Africa). Finally, ETG’s corn-soya production facilities and sales to UN organisations indirectly help malnourished people in Africa.

Investment details

Name: ETC Group
Project number: 80000214
Region: Africa
Country: Africa
Sector: Agriculture
Signing date (month/year): April 2020
Currency: USD
Finnfund's financing (commitment): 15,000,000
Instrument: Loan
Size of the project financing: USD 150,000,000
Share of Finnfund's financing (%): 9 %
Status: Active
Website: https://www.etgworld.com

Please note, that in principle, this information is given at the time of signature according to Finnfund's disclosure policy. However, in the case of investment funds, the share of Finnfund’s financing (%) is disclosed after the fund’s final closing, and information on the portfolio companies financed by the fund is updated at least once a year.

Other investments

Name Country Signing date (month/year) Currency Finnfund's financing (commitment) Instrument
ETC Group Tanzania, Mozambique, Malawi October 2021 USD 10,000,000 Loan
April

Key facts

Name:

ETC Group

Sector:

Agriculture

Region:

Africa

Country:

Africa

Currency:

USD

Finnfund's financing (commitment):

15,000,000

Signing date (month/year):

April 2020

Last update:

June 2020