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 development finance institutions fund its operations, and it is widely considered one of the most bankable agribusinesses in Africa. IFC is syndicating a USD 116 million medium-term working capital facility. Finnfund’s proceeds will be used in Tanzania, Malawi, and Mozambique by five ETG subsidiaries.
Main development impact
The transaction supports Finland’s main development policy goal to eradicate poverty and reduce inequalities, e.g. creating jobs and improving the livelihood of the smallholders in Sub-Saharan Africa. ETG develops and improves smallholder farmers' access to the market by sourcing commodities from rural areas. Its activities increase competition and thereby improve the prices and income of farmers. In addition to sourcing from smallholder farmers, ETG provides access to critical inputs such as fertilisers and seeds, which help farmers increase their yields. ETG has CSR programs that also help farmers improve their yields and the sustainability of their agricultural practices. ETG’s logistics and infrastructure network of warehouses is expected to decrease post-harvest losses, the largest in Africa (15-20%). ETG’s operations have a positive impact on export revenues in Africa.Investment details
| Name: | ETC Group |
|---|---|
| Project number: | 80000214 |
| Region: | Africa |
| Country: | Tanzania, Mozambique, Malawi |
| Sector: | Agriculture |
| Signing date (month/year): | October 2021 |
| Currency: | USD |
| Finnfund's financing (commitment): | 10,000,000 |
| Instrument: | Loan |
| Size of the project financing: | USD 116,000,000 |
| Share of Finnfund's financing (%): | 8,60 % |
| 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 | Africa | April 2020 | USD | 15,000,000 | Loan |
