|Approval Date||14 Jun 2017|
|Signature Date||16 Apr 2018|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Agriculture and Rural Development|
|DAC Sector Code||32161|
The project involves the grant of an Agricultural Commodities Financing Facility, up to US $ 100 million and for a period of 2 years (renewable for another 2 years), to Export Trading Company Group Mauritius . Founded in 1967, ETG has over time become a global player in the management of the supply chain and the processing of agricultural products. ETG is active in the marketing of more than 25 raw materials in 26 African countries and is currently the largest trader of sesame seeds and cashew nuts in the world, the largest fertilizer importer in Africa and one of the largest maize traders on the continent. The proposed facility represents an opportunity to support a well-established and professionally run commodities company in sub-Saharan Africa. By investing in this company, the Bank will play a countercyclical role, complementing existing public and private sector initiatives to support positive change in the sector. This facility will benefit the African subsidiaries of the Group, particularly those operating in South Africa, Benin, Burkina Faso, Burundi, Côte d'Ivoire, Ethiopia, Kenya, Malawi, Mali, Mozambique, Nigeria, Uganda, Rwanda, Tanzania, Togo, Zambia and Zimbabwe. The bulk of the facility (90%) will finance the purchase of crops from African farmers, including pulses, cashew nuts, maize, sesame seeds, oilseeds, coffee and cotton. The remaining 10% will be used to import fertilizer.
The main objective of this Soft Commodity Finance Facility (SCFF) is to support ETC Group pre and post shipment working capital requirements for its end to end agricultural value chain operations in Africa.
The facility will not only benefit one of Africa’s oldest and largest aggregators but also allow ETC to compete on a level field with international aggregators who are able to raise inexpensive funding from international markets such as Cargill. In addition, the SCFF will provide broad empowerment benefits directly impacting at least 300,000 small scale farmers in the respective 13 RMCs.
African Development Bank
|Last Update||31 Oct 2019|