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ETC Group

Customer

ETC Group (“ETG”) is a large and diversified agricultural commodity trader and supply chain manager with most of its footprint in Africa. Since its establishment in 1967 in Kenya, ETG has emerged into one of the largest independent agricultural commodity supply chain managers in Africa. The Group owns and manages a vertically integrated agricultural supply chain with operations spanning from procurement, processing, warehousing, distribution and merchandising. ETG operates and manages more than 460 warehouses and operates over 120 processing plants.

Funding Objective

DEG will provide long-term working capital to ETG.

Reasons for financing

ETG plays a key role in various agricultural value chains (e.g. cashew nuts, sesame seeds, pulses). In Africa, it uses its own supply chain infrastructure to source over 80% of its agricultural commodities at farm-gate.

ETG is also one of the largest importers and distributors of fertilizer in Africa. As such, it plays an important role in enhancing incomes of African farmers. The DEG facility will allow ETG to stabilize and grow its business.

DEG’s role and additionality: DEG provides long-term financing in Africa and promotes environmental and social standards (potential for business support service – “BSS” to strengthen the agri supply chain).

Region Africa (Sub-Sahara)
Country Supraregional
Sectors Agribusiness
Signing Date 03-2020
Funding USD 40 Million
Source of Funding DEG's own funds
Environmental & Social Category
Risk categorization on environmental and social impacts:
A = High risk; Investments with significant potential adverse social or environmental impacts that are diverse, irreversible or unprecedented. These impacts cannot be mitigated or remedied or only at significant costs.
B+ = High Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific addressed through mitigation measures, but having specific features which can have potential significantly more adverse social or environmental impacts.
B = Low Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific and readily addressed through well-known mitigation measures.
C = Low Risk; Investments with minimal or no adverse social or environmental impacts.
FI-A = Financial Institutions High Risk; Financial Institutions with business activities or projects with significant potential adverse social or environmental impacts or risks.
FI-B =Financial Institutions Medium Risk; Financial Institutions with business activities or projects with limited potential adverse social or environmental impacts or risks.
FI-C =Financial Institutions Low Risk; Financial Institutions with business activities or projects with minimal or no adverse social or environmental impacts or risks.

B+/A
Website of the customer www.etgworld.com

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