OPEC Fund Signs $40 million Loan with Africa's Leading Agriculture Commodity Trader

Africa Finance Review Team

— 1 min read
OPEC Fund Signs $40 million Loan with Africa's Leading Agriculture Commodity Trader
Photo by v2osk / Unsplash

The OPEC Fund, the development finance institution for the Organisation of the Petroleum Exporting Countries (OPEC) member states, has entered into a $40 million loan agreement with ETC Group, a prominent agriculture and supply chain operator in Africa.

Why does this matter: The loan is the OPEC Fund's first Sustainability-Linked Loan and is part of a comprehensive $394 million Sustainability-Linked Loan (SLL) package provided by a consortium of other development finance institutions, including FinDev Canada, FMO, TDB, DEG, and Proparco, which underscores a concerted initiative be these DFIs to promote sustainable agricultural practices within the region.

  • In April 2024, ETC Group secured a $115 million Sustainability-Linked Revolving Credit Facility, enhancing its financial capacity to invest in essential agricultural projects
  • The company has expanded its operational reach by acquiring Nitrophoska, a well-established South African firm recognised for innovative agricultural solutions.

The ETC Group continues to not only grow its footprint but seems to be focused on taking a proactive approach to ensure its operations are sustainable inclined.

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