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African Development Bank Approves $75 Million to Boost Africa’s Agriculture with ETG Partnership

The African Development Bank Group (AfDB) has approved a $75 million financing package for Export Trading Group (ETG), a Mauritius-based conglomerate that operates across Africa.

The financing will support ETG’s extensive operations in agricultural inputs, logistics, merchandising, processing, supply chain optimization, and energy. This initiative aligns with the Bank’s mission to transform agriculture and improve food security in Africa.

ETG will receive $65 million from the Bank’s resources and an additional $10 million from the Agri-Food Catalytic Financing Mechanism (ACFM).

The ACFM, funded by Canada’s Department of Foreign Affairs, aims to boost gender-oriented and underserved agricultural small and medium enterprises (SMEs) in Africa. This co-financing is part of ETG’s Sustainable Linked Loan facility, which supports its core value chain assets.

The investment will enhance ETG’s operations in 14 African countries, including Kenya, Ghana, Nigeria, and Zambia, among others.

This funding will support processing facilities, packaging centers, and warehouses, as well as provide fertilizers and other essential agricultural inputs to farmers.

Also Read: AfDB Approves €9.51 Million for Comoros Digital Economy Project

Supporting Sustainability and Women Empowerment in Agriculture

The Sustainable Linked Loan facility requires ETG to meet annual sustainability targets. These include goals for decarbonization, reforestation, zero deforestation, gender empowerment, and farmer extension services.

The Bank emphasizes sustainability by tying loan terms to these key performance indicators. Failure to meet these targets could impact the financial aspects of the loan.

“The African Development Bank Group is thrilled to expand our work with Export Trading Group. We support its commitment to strengthen women’s economic development in Africa.

“Access to finance and training in agriculture will contribute to food security and economic growth.” Dr. Beth Dunford, AfDB Vice President for Agriculture, Human, and Social Development.

ETG has also pledged to work with 600,000 smallholder farmers by 2027, with a 25 percent target for women farmers. This program will provide training on sustainable farming practices and improve access to resources for these farmers.

The project will boost exports from Bank regional member countries. It will also increase intra-regional trade within Africa’s major economic blocs.

AfDB Driving Africa’s Agricultural Growth

The AfDB’s investment aligns with its ‘High 5’ priorities, including “Feed Africa,” “Integrate Africa,” and “Improve the quality of life for the people of Africa.”

This initiative is part of the Bank’s Ten-Year Strategy 2024-2033 to make Africa’s agricultural sector more business-oriented and commercially viable.

“By tying loan conditions to performance indicators related to sustainability, ETG is more likely to engage in activities that advance the Sustainable Development Goals.

“This alignment will drive better environmental, social, and governance outcomes,” noted Richard Ofori-Mante, Director of the AfDB’s Agricultural Finance and Rural Development Department.

The partnership with ETG will make a lasting impact on African agriculture. Moreover, it will enhance food self-sufficiency and the livelihoods of millions across the continent.