May 11, 2020
Finnfund invests 15 million US dollars to strengthen the agricultural supply chain in Africa
Finnfund is one of the investors in a syndicated loan to ETC Group (“ETG”). ETG has developed into a global player with a diverse portfolio of expertise across multiple industries, encompassing agricultural inputs, logistics, merchandising and processing, and supply chain optimization, with most of its footprint in Africa. ETG operates in 26 African countries and manages more than 400 warehouses and over 90 processing plants worldwide. The facility will enable ETG to further develop its business.
“We are excited to partner with Export Trading Group in Malawi, Mozambique and Tanzania in their agri-commodity trading and processing operations”, says Finnfund’s Associate Director Jari Matero. “It is important to support the agricultural commodity trade and the supply of key agri-inputs such as fertilizers to local farmers in this challenging situation. Over the past decades, Export Trading Group has played a pivotal role in agricultural development.”
With this long-term financing, the DFIs support a major agricultural supply chain of numerous African and Asian countries, which have particularly been affected in this corona pandemic. This contributes to food security for populations in need.
“ETG is proud to partner with four marquee DFIs to provide sustainability linked financing facility”, says Anish Jain, Chief Treasury Officer at ETG. “This is a unique facility for African agriculture sector that will allow us to enhance collaboration with small-holder farmers to buy the staple food crops and increase farmers’ linkages to international markets. This facility will bring strength to our operations, especially in such challenging times of Covid-19.”
Jari Matero, Associate Director, Head of Agri and Forestry portfolio, jari.matero (a) finnfund.fi, tel. +358 40 523 2815