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.
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).