In a significant step toward promoting sustainable development in Africa’s agricultural sector, the OPEC Fund for International Development has approved a $40 million loan as part of a larger $394 million sustainability-linked financing package for the ETC Group (ETG), one of the continent’s largest agricultural commodity supply chain managers.
This loan, which is the OPEC Fund’s first sustainability-linked financing, is accompanied by contributions from several other development finance institutions. The innovative financing ties the loan’s terms to the achievement of environmental, social, and governance (ESG) targets, motivating ETG to improve the livelihoods of farmers, reduce environmental impact, and boost food security across sub-Saharan Africa.
“This partnership showcases our commitment to integrating sustainability into our private sector operations,” said OPEC Fund President Abdulhamid Alkhalifa. “Through our support for ETG’s growth, we are addressing critical issues such as food security, enhancing agricultural value chains, and improving the livelihoods of over 600,000 smallholder farmers in the region.”
Co-arranged by various development finance institutions, this financing package highlights the international community’s collective commitment to building a more resilient and sustainable agricultural sector in Africa, especially in light of challenges like climate change and supply chain disruptions that have stressed the region’s food systems.
“The OPEC Fund’s continued support has been pivotal in helping ETG expand its operations and positively impact smallholder farmers’ lives,” said an ETG spokesperson. “This latest sustainability-linked loan will strengthen our ability to foster sustainable development and improve food security across sub-Saharan Africa.”
