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Publish Date : 19-Jun-2017

The Abidjan-based African Development Bank (AfDB) has offered its approval for a $100-million worth of facility to finance the soft commodity value chain operations of Export Trading Group (ETG), one of the fastest growing integrated agricultural supply chain groups in the world, in sub-Saharan Africa.

The newly approved soft commodity finance facility (SCFF), a core trade finance instrument utilized by the regional lender, is resourcefully designed to deliver pre- and post-shipment money across different phases of commodity value chain operations of ETG in the 17 countries that are likely to gain from the scheme.

Through this intervention, local cultivators and soft commodity providers will be able to increase their income and produce quality crops for the export markets.

The facility, according to the AfDB, will be mainly utilized to fund the acquirement of selected agricultural commodities from more than 600 000 cultivators.

The SCFF, after the procurement of the soft commodities, will extend working capital to ETG, facilitating the firm to do value addition and process the soft commodities before their exports, and deliver funds to buy farm inputs for the farmers.

Issuing a statement on Thursday, the AfDB disclosed, This trade finance intervention along the agricultural value chain will enable the bank to reach many small-scale farmers indirectly through ETG.

ETG, a major pan African commodity aggregator originally founded in Kenya in 1967, is actively involved to promote agribusiness in those nations, in which the agriculture sector, by and large, is the chief employment generator, accounting for over 70% of overall employment.

The regional lender summed up, Through the implementation of innovative programmes such as the SCFF, the AfDB seeks to promote private sector development in line with its ten-year strategy.

The AfDB is expanding its interventions through directing financial resources to agricultural value chains in order to help Africa become a net exporter of foodstuff, and achieve self-reliance in major commodities plus develop commercially feasible agribusiness activities.

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