Impact Fund Denmark is providing a loan of USD 22.5 million (DKK 146 million) to the African agribusiness group ETG. The investment will help ensure that thousands of African farmers gain access to fertiliser and markets, while also receiving fair prices for their crops.
When a farmer in northern Mozambique or inland Tanzania harvests sesame, beans or nuts, it is crucial that there is a buyer able to pay for the produce and with both storage capacity and access to global markets. ETG provides exactly that.
The investment is structured as a sustainability-linked loan, with the interest rate reduced if ETG meets a series of specific targets. These include increasing support for women farmers, expanding advisory services for farmers, and reducing deforestation and carbon emissions.
ETG is one of Africa’s largest agribusiness groups, operating in 32 African countries. The company purchases crops directly from smallholder farmers and supplies them to global markets. At the same time, ETG provides fertiliser, seeds and agricultural advisory services to farmers.
Many farms across the African continent have enormous potential, but too much value is lost because the farmers do not have access to the right markets and financing. By supporting ETG, we are backing a company that can make a tangible difference for farmers while strengthening local value chains.
Impact Fund Denmark is providing the financing alongside a number of European and African development finance institutions, including FMO, TDB, Finnfund and CDP. The total loan amounts to USD 600 million, of which Impact Fund Denmark is contributing USD 22.5 million.
Agriculture employs millions of people across Africa, but too much value is lost when farmers lack access to logistics, financing and markets. ETG is addressing this challenge at scale. What makes this investment particularly compelling is that the loan is structured to ensure that ETG places special emphasis on areas such as supporting women farmers, expanding advisory services and reducing deforestation.
ETG has set a target of reaching one million farmers by 2030.
External Communications Director
Thøger Kirk
+45 53 76 08 05
