The UK’s development finance institution, CDC Group, and impact investor have announced a $100 million debt commitment to an agricultural conglomerate ETG to provide assistance to smallholder farmer operations across Africa and Asia.
The debt commitment will assist the ETG’s food growth and agribusiness and will help ETG strengthen food value chains by expanding its logistics networks, enhance the production of staple foods like rice, cocoa, and grains, and agricultural yields.
The ETG currently has a long-term relationship with more than 550,000 smallholder farmers across Africa and the debt commitment will enhance their livelihoods as it links them to the global and regional markets.
The chief treasury officer ETG, Anish Jain stated that “We are grateful for the support provided by the CTC Group. ETG is glad to extend its existing presence in various markets and also provide assistance to communities across our extended footprint”
He added that “EGC focuses on smallholder farmer’s development linking them with global markets by making use of its proprietary end-to-end supply chain. CDC’s emphasis on ESG frameworks shows a solid achievement for ETG to assist in strengthening its world-class supply chain and mitigate operational risks.”
As regards the funding facility, CDC will support ETG’s efforts towards the alignment and implementation with the international environmental and social standards with an improved emphasis on supply chain risk management, procedures, and safeguarding work.
ETG has strong ESG credentials, recently it launched a data-driven agricultural intensification pilot project in Kenya to enhance the productivity of farmers while it improves the environmental risk management and climate resilience of ETG food staples in Kenya.
The managing director and head of private corporate debt and equity CDC, Tony Morgan also commented stating that agriculture and rural development are important factors that accelerate economic transformation in Africa and meeting global health and food needs.
“As these sectors continue to develop and emerge, this transition will be enhanced through diversified, technologically enabled and commercially oriented agro-industry that links Africa’s market internationally and regionally.”
He added that “We are glad to strengthen our collaboration with ETG and hope to have tremendous impact and economic development that can be supported by CDC’s patient capital.”
Similarly, Her Majesty’s Trade Commissioner for Africa at the UK Department for International Trade, Emma Wade Smith OBE said that enhancing African farmers’ access to markets is vital to food security in the continent and globally stating that it is important to maintain and enhance the livelihoods of smallholder farmers in Africa.
