|Approval Date||10 Nov 2021|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Agriculture and Rural Development|
|DAC Sector Code||32161|
The proposed project is a Trade and Agri-Finance Package comprising: (i) A USD60 million Trade Finance Soft Commodity Finance Facility (SCFF) to continue supporting (ETC) Group’s pre- and post-shipment working capital requirements with a particular focus on export-oriented activities; and (ii) A USD60 million Agriculture Value Chain Program to increase agriculture production and productivity by providing improved agricultural inputs and agronomic advisory services to local farmers while enhancing ETC’s value-chain logistics and processing capacities across targeted 10 countries in Africa. The borrower ETC Group Limited is a pan-African agriculture conglomerate with a footprint expanding across Sub-Saharan Africa, North America, Europe, Middle East, and South East Asia, trading millions of tons in soft commodities. The Group has a permanent-staff composition of 7200, with operations covering 26 African countries.
The main development outcomes stem from: (i) contribution to food security by increasing agricultural production and enhancing logistical capacity to strengthen distribution mechanisms; (ii) contribution to food import substitution by processing and packaging agricultural products locally while increasing value addition of export-oriented products, which decrease the current account deficit in African countries (iii) job creation for men, youth and estimated 1,500 women throughout various agriculture commodity value chains; (iv) fiscal contribution to RMCs through import/export duties, corporate tax, value-added tax; and (iv) explicit support for women enterprises to enhance their business management skills and promote inclusive growth in the agriculture and food sectors where a large number of women can be employed.
The ultimate beneficiaries of this intervention will be smallholder farmers (a significant number being women and youth entrepreneurs), whose productivity is expected to increase from the deployment of high-quality agricultural inputs. Rural women who are employed at various processing facilities in these countries will also benefit from this project.
African Development Bank
|Last Update||16 May 2022|