ETC Group (ETG), one of Africa’s largest agricultural commodity traders and supply chain managers, has expanded a sustainability-linked syndicated loan to $600 million, strengthening its financing base as it expands agricultural operations across Africa and parts of Asia.

The facility, arranged by FMO and the Trade and Development Bank Group (TDB Group), will provide working capital to support agricultural value chains, including access to markets, inputs, infrastructure, training and advisory services for smallholder farmers.

Financing expands from $394 million

The facility was initially signed at $394 million by FMO, TDB Group, DEG, FinDev Canada, the OPEC Fund for International Development and Proparco, with FMO Investment Management and ILX Fund participating.

It has since grown to $600 million after FinDev Canada increased its commitment and new investors joined, including the Asian Development Bank, Cassa Depositi e Prestiti, Finnfund, Impact Fund Denmark and OeEB, the development bank of Austria.

The financing covers commodities including grains, pulses, oilseeds and fertilizers, supporting ETG’s role in connecting farmers with regional and international markets.

Its sustainability-linked structure ties the loan’s interest margin to ETG’s performance against agreed environmental and social targets. The facility has already exceeded several impact objectives related to deforestation, reforestation and the number of farmers receiving extension services, including women farmers.

Focus on African farmers and food security

The financing comes as African agricultural producers continue to face constraints in accessing finance, inputs, infrastructure and formal markets.

ETG aims to reach one million African smallholder farmers with services designed to improve production, crop quality, traceability and climate resilience. The company also supplies fertilizers and seeds while connecting farmers to commercial markets.

Huib-Jan de Ruijter, Co-CIO at FMO, said ETG plays an important role in connecting African smallholder farmers to markets, inputs and services, while the financing encourages measurable environmental and social progress.

Michael Awori, TDB’s Trade and Development Banking chief executive for the Eastern and Western African region, said the facility strengthens the institutions’ longstanding partnership with ETG and supports farmers, agribusinesses and traders driving Africa’s regional food systems.

ETG’s African supply chain

Founded in Kenya in 1967, ETG has grown into a global agricultural group with operations in more than 45 countries across six continents. Its businesses span agricultural inputs, chemicals, logistics, processing, food and ingredients, energy, metals, technology and supply chain optimization.

ETG operates a vertically integrated agricultural supply chain covering procurement, processing, warehousing, distribution and merchandising. The company owns and manages more than 300 warehouses and over 70 processing plants, while investing more than $300 million in supply chain infrastructure in Sub-Saharan Africa over the past decade.

The expanded financing gives ETG additional capacity to support agricultural trade, strengthen food supply chains and deepen its role in Africa’s growing agribusiness economy.