AFRICA – Finnfund, a development financer, has invested US$15 million in a syndicate loan to Export Trading Group (ETG) alongside other investors to enable it further develop its business.
Founded in Kenya in 1967, ETG has emerged as one of Africa’s largest Agricultural Conglomerates with footprints across sub-Saharan Africa, North America, Europe, the Middle East and South East Asian countries.
Globally recognised as one of the fastest growing integrated agricultural supply chain groups, its operations include procurement, warehousing, processing and/or manufacturing of finished goods, transporting and distributing of products and driving brand growth, with most of its footprint in Africa.
It operates in 26 African countries and manages more than 400 warehouses and over 90 processing plants worldwide.
“We are excited to partner with Export Trading Group in Malawi, Mozambique and Tanzania in their agri-commodity trading and processing operations,” said 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 Development Finance Institutions (DFIs) will support 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.”
Finnfund (Finnish Fund for Industrial Cooperation Ltd) is a Finnish development finance company that provides long-term risk capital for private projects in developing countries and Russia. By sharing risks with the sponsors, Finnfund seeks to promote investments that are not only profitable but also environmentally and socially sound.
Finnfund invests mainly with Finnish companies but can also finance their local partners, such as long-term customers, suppliers, subcontractors and companies that license technology.
In addition, Finnfund can co-invest with other development finance institutions in projects that do not directly involve Finnish business but that generate significant environmental or social benefits. Renewable energy, forestry and telecommunications are among the industries where Finnfund is eager to co-finance projects with other development financiers.
