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A loan to support ETG, one of the largest agricultural companies in Africa

Project

Agriculture and agri-food
Signature date
Location
Multi-country Global, Bangladesh, Vietnam, South Africa, Benin, Burkina Faso, Côte d'Ivoire, Ethiopia, Ghana, Guinea-Bissau, Kenya, Malawi, Nigeria, Mauritius, Mozambique, Namibia, Uganda, Rwanda, Tanzania, Togo, Zambia
Financing tool
Loan
Financing amount (Euro)
4300000
Financing details
USD 4,800,000 senior loan
Customer
ETC Group Mauritius
Type of customer
Company
Country of headquarters
Mauritius
Project number
PZZ1505
Environmental and social ranking
A
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Proparco has confirmed its support for the agriculture sector and economic growth in Africa via a new loan allocated to ETG. This project is helping maintain 6,800 direct jobs and create 2,200 additional jobs for a total of 9,000 employees over the next 5 years. It will also maintain 401,040 indirect jobs related to recurring seasonal employment and ETG’s field work.

Client presentation

ETG, which was set up in 1967 in Kenya, has now become one of the largest agricultural companies in Africa. It is also the only African trader to compete with international traders such as Louis Dreyfus, Cargill, Olam, etc. Every year, ETG transports some 7m MT of agricultural raw materials in over 40 countries, including 26 in Africa. It has a strong base in East and Southern Africa. 

Project description

Optimize the financing structure by increasing short-term credit lines and/or replacing part of them with a long-term facility to meet the permanent working capital requirements inherent to ETG Group’s trading/distribution activity. 

Project impact

A major direct contribution to structuring the agriculture sector and economic growth: 6,800 direct jobs maintained and 2,200 additional jobs created for a total of 9,000 employees over the next 5 years. 401,040 indirect jobs related to recurring seasonal employment and ETG’s field work with smallholders will also be maintained, EUR 243m of products will replace imports every year, and EUR 152.6m of net value added will be created in the local economy every year.