Dar es Salaam, June 12, 2013
— IFC, a member of the World Bank Group, today announced a loan of $70 million to ETC Group’s expansion in Africa, and helping the agricultural supply chain managing company’s reach to smallholder farmers and spur economic growth. Based in Mauritius, ETC Group has food processing and trading operations in Sub-Saharan Africa, the Middle East and Asia.
ETC Group will use the financing to set up processing plants for cashew, pigeon pea and soya in Cote d’Ivoire, and Tanzania. The company also plans to build commodity warehouses in Zambia, Tanzania, Nigeria, and other Sub-Saharan Africa countries.
IFC and ETC Group will work together to help the company source more products from local smallholder farmers. ETC expects its purchases from farmers and entrepreneurs to increase from $491 million currently to $2.7 billion by 2017. In turn, the farmers will receive crop finance from ETC Group and gain access to the Group’s regional and global markets. ETC Group’s new processing plants and warehouses will provide better quality and more affordable sources of food as well as create jobs in the countries where they are based.
Ketan Patel, the Managing Director of ETC Group, said, “IFC’s loan supports ETC Group’s growth, and our goals to reach more farmers in Sub-Saharan Africa. By partnering with IFC, ETC Group aims to create growth opportunities for farmers and local communities in Africa, providing them with global market access through our supply chains.”
Oscar Chemerinski, IFC’s Director for Manufacturing, Agribusiness and Services, said, “With access to the right markets, even the smallest farmers can move from subsistence farming and contribute to global food security. IFC is committed to helping global companies such as ETC Group do more business with smallholder farmers in Africa; as this increases food security and revenues for local farmers, as well as creating jobs for suppliers, entrepreneurs and distributors.”
IFC’s financing continues an investment relationship with ETC Group that began in 2010 with its first loan. ETC Group has since emerged as one of the continent’s leading agribusiness companies, distributing agricultural commodities to 45 countries in the world. The Group has been expanding its presence in Africa and Asia by increasing its processing, brokering, logistics, and distribution entities.
With $4 billion in agribusiness investments worldwide, IFC believes that the private sector plays a crucial role in addressing agriculture’s pressing challenges. Agribusiness is a large source of employment for Africans, often providing linkages with smaller businesses.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by
financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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