ImpactAlpha, May 12 — CDC Group has committed $100 million in debt funding to agricultural commodities supplier ETG to expand its logistics networks and boost yields of grains, rice, cocoa and other staples.
ETG connects more than 550,000 smallholder farmers in 49 countries to global markets and provides warehouses and distribution centers, as well as agricultural inputs and training. Including the new commitment, ETG has linked one-third of its loan book linked with ESG and sustainability standards, said ETG’s Anish Jain.
The infusion is one of the largest corporate debt investments ever by CDC, which is funded by the U.K. government. “Improving access to markets for Africa’s farmers is critical to food security, across the continent and the world,” said Emma Wade Smith of the U.K. Department for International Trade, as well as to “sustain and improve the livelihoods of Africa’s farmers and their families.”
CDC Group last year promised to spur global development by taking a more catalytic approach from its often risk-averse DFI peers (see, “How CDC Group is innovating with catalytic capital”).
CDC committed $275 million to African banks to expand financing for the continent’s small businesses (see, “CDC Group backs Africa’s banks to ratchet up small business finance”), as well as $100 million in a risk-sharing facility with Société Générale to boost African trade (see, “Trade finance provides ‘systemic liquidity’ to emerging-market businesses in COVID crisis”).