Press Release: Trade and Development Bank Group Extends USD $100 Million Financing to the Export Trading Group to Support Smallholder Farmers in Africa
The Eastern and Southern African Trade and Development Bank (TDB) has extended a USD 100 million trade finance facility to Agri Commodities and Finance FZE-LLC (ACF), a subsidiary of the Export Trading Group (ETG), one of the largest agricultural supply chain operators in Africa.
In addition to funding the importation of fertilizers and vital agricultural inputs such as seeds to smallholder farmers to increase crop production in member states, the facility will support ETG’s purchase of sesame, coffee, cocoa, soybean, and cashew nuts from exporting smallholder farmers in TDB member states.
In a region where the majority of employment is in agriculture, 285,000 smallholders are expected to benefit from value chain integration as a result, and 350,000 from training on good agricultural practices through various initiatives including this Facility.
The facility will contribute to alleviating the impact of current supply chain disruptions, escalating inflation, and the urgent need for agricultural inputs and food across the region, as well as bridging the trade finance gap on the continent. Furthermore, it will facilitate intra and extra-regional trade flows, and boost forex revenues, to the benefit of member states’ balance of payments.
Michael Awori, TDB CEO, said: “TDB is very pleased to extend this facility to ETG. Through our longstanding relationship, we are contributing to supporting food security in the region, building on sustainable and responsible practices, as well as sustaining income and market access for smallholder farmers. With over 50% of employment in Sub-Saharan Africa being in agriculture, TDB is a strong supporter of the sector. Currently, almost 20% of our portfolio is allocated in agriculture.”
Anish Jain, ETG’s Chief Treasury Officer, stated: “We are extremely grateful for the trade finance facility extended by TDB. This loan will help enhance agricultural value chains and livelihoods of approximately 285,000 smallholder farmers in the African region and work towards building a sustainable future. ETG remains focused on uplifting farming communities by connecting smallholder farmers with international markets, expanding mechanization and processing capabilities, and increasing knowledge around quality inputs, irrigation, post-harvest techniques and yield-enhancing practices. The Bank’s support will allow ETG to strengthen and expand its operations across the agricultural value chain and will support access to critical fertilizers and food supplies across Africa.”
ETG’s “farm to fork” business model strategically aligns with TDB’s mandate for trade facilitation, regional integration and overall sustainable development in its member states. The facility will also complement ongoing efforts to achieve the following Sustainable Development Goals (SDGs) in the region: SDG1- No poverty; SDG2- Zero hunger; SDG5- Gender equality, SDG8- Decent work and economic growth, and SDG 10: Reduced inequalities.
Photo courtesy of Julie Larsen Maher ©Wildlife Conservation Society.