The OPEC Fund has signed a $40 million loan to strengthen food systems in Africa. The loan is part of a $394 million sustainability-linked package for ETG. This financing will benefit over 600,000 smallholder farmers across sub-Saharan Africa.
ETG, one of Africa’s largest agricultural supply chain managers, will use the funds to enhance working capital. The loan will also support environmental, social, and governance (ESG) goals. These include improving farmer livelihoods, reducing environmental harm, and enhancing food security.
Also Read: African Development Bank Approves $75 Million to Boost Africa’s Agriculture with ETG Partnership
A First for the OPEC Fund
This is the OPEC Fund’s first sustainability-linked loan. It ties lending terms to achieving ESG targets. OPEC Fund President Abdulhamid Alkhalifa said:
“Our first sustainability-linked loan demonstrates the OPEC Fund’s dedication to fostering sustainable development through innovative financing.
“Our strong and longstanding partnership with ETG enables us to address food security, strengthen agricultural value chains and improve the livelihoods of smallholder farmers in sub-Saharan Africa.
“This partnership also reflects our commitment to embedding sustainability at the core of our private sector operations.”
Established in 1967 in Kenya, ETG manages over 300 warehouses and 70 processing plants. The OPEC Fund first supported ETG in 2009 with a $30 million loan. Since then, over 350,000 farmers have benefited, especially in least-developed countries.
The $394 million financing package includes contributions from FMO, TDB, DEG, FinDev Canada, and Proparco. These organizations share a commitment to building a resilient agricultural sector.
This partnership highlights the importance of sustainable financing to boost food security in Africa. It also promotes stronger agricultural value chains for the region.