- FinDev Canada is the first development finance institution officially recognised as a supporter of Sustain Africa
- This is after investing $55 million five-year fully reduced term loan to ETG group to boost smallholder farmers in Africa
- The loan will connect African farmers to international markets and empower farming communities in the region
Africa- FinDev Canada is providing a five-year fully amortized term loan of up to $55 million to ETG (the Group), an agribusiness that plays a key role in increasing the availability of food staples globally by connecting smallholder African farmers to international markets.
Since its establishment in Kenya in 1967, ETG has grown into a global conglomerate. The Group empowers farming communities through the distribution of quality fertilizer and agricultural inputs to optimize yields, through its network of strategically placed distribution centers and storage facilities, logistical solutions, and creating local and international markets for their produce.
With the support of its foundations, ETG developed numerous initiatives developed to uplift farming communities and is a key player in the Sustain Africa program, which supports quality input products, such as fertilizer, as a necessary step toward food security.
“This loan is a real opportunity for FinDev Canada to contribute towards food security in a moment when different global challenges have had a severe impact on food supplies. In addition, this provides an opportunity for future engagements and increases FinDev Canada’s impact across the African content,” said Paulo Martelli, Chief Investment Officer of FinDev Canada.
Anish Jain, ETG’s Chief Treasury Officer commented:
“One of ETG’s top priorities is to play an active role in establishing food security in Africa. We remain passionate and committed to uplifting farming communities through the provision of quality inputs, agronomy support, training and development on smart agriculture techniques and to implement value addition through processing locally. We are extremely grateful to FinDev Canada for providing us with another facility to increase our efforts. We have built a strong relationship with the institution and look forward to creating a positive impact with their support.”
Subscribe to our weekly newsletter and get industry reports and deals happening in Africa.
FinDev Canada is already a lender to ETG, which has since developed a gender action policy to be finalised early this year and is working to improve women’s economic empowerment, which is a key priority for FinDev Canada.
ETG also supports Sustain Africa, an emergency response and resilience initiative to improve availability, affordability, and effective and sustainable use of fertilizers while avoiding market distortion, founded by the African Fertilizer and Agribusiness Partnership (AFAP), Bill & Melinda Gates Foundation, Rabobank and International Fertilizer Association with the support of Alliance for a Green Revolution in Africa (AGRA).
Through this investment, FinDev Canada becomes the first development finance institution officially recognised as a supporter of Sustain Africa.
Also read: FMO, CIB sign $50m credit guarantee to support SME customers in Egypt
FMO, CIB Sign $50M Credit Guarantee to Support SME Customers in Egypt
Subscribe to our weekly newsletter and get industry reports and deals happening in Africa.