ETC Group (Mauritius)
Region and country of operations: Africa / Tanzania, Mozambique, Malawi
Jurisdiction of registration: Mauritius
Business sector: Agriculture
Date of agreement (month/year): 10/2021
Finnfund’s financing: USD 10,000,000
Share of Finnfund’s financing: 8.6%
Size of project/financing: USD 116,000,000
Environmental and social category: A
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 the largest players in agribusiness trading and processing in Africa.
Several major DFIs are funding 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 access to the market for smallholder farmers 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 are expected to decrease the post-harvest losses, which are the largest in Africa (15-20%). ETG’s operations have a positive impact on export revenues in Africa.