ETG has secured a $600 million sustainability-linked syndicated loan to strengthen its agricultural operations across Africa and support smallholder farmers, agricultural trade and food supply chains.

The facility was arranged by the FMO and Trade and Development Bank Group (TDB Group), alongside a group of international development finance institutions.

The financing will provide working capital for ETG’s agricultural activities, including grains, pulses, oilseeds and fertilisers.

Financing to Support African Farmers

The facility is designed to strengthen agricultural value chains by improving farmers’ access to markets, inputs, infrastructure, training and advisory services.

This is particularly important for Africa’s smallholder farmers, who continue to face challenges accessing affordable finance, quality inputs and formal markets.

ETG aims to reach one million African smallholder farmers, with programmes focused on productivity, crop quality, traceability and climate resilience.

The company operates across more than 50 countries, with activities spanning agricultural inputs, logistics, processing, food ingredients and supply-chain services.

Loan Links Financing to Sustainability

The loan’s sustainability-linked structure ties ETG’s financing costs to its performance against agreed environmental and social targets.

The company has already exceeded several impact targets related to reforestation, deforestation and the number of farmers receiving agricultural extension services.

The facility also places emphasis on increasing support for women farmers, improving agricultural advisory services and promoting more sustainable production practices.

Boost for Africa’s Food Security

Agriculture remains one of Africa’s most important sources of employment and economic activity, making access to agricultural finance critical to the continent’s development.

The ETG facility could help strengthen food security by supporting production while improving the movement of commodities from farmers to markets.

It also supports intra-African agricultural trade, helping connect producers and businesses across regional markets.

For development finance institutions, the transaction demonstrates how private-sector financing can be used to support both commercial agricultural activity and broader development objectives.

A Major Investment in African Agriculture

The $600 million facility comes as African countries seek to reduce dependence on food imports, increase agricultural productivity and develop stronger domestic and regional value chains.

By combining financing with sustainability targets, ETG and its lending partners are seeking to address some of the structural challenges facing African agriculture.

The success of the programme will ultimately depend on how effectively the financing reaches farmers, improves productivity and creates stronger markets across the continent.

For African agriculture, however, the deal represents a significant injection of capital into a sector that will be increasingly important for jobs, food security and economic growth.