The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

In a move to support sustainable development in Africa's agricultural sector, the OPEC Fund for International Development has signed a $40 million loan as part of a $394 million sustainability-linked financing package for ETC Group (ETG), one of the continent's largest agricultural commodity supply chain managers.

The financing, which also includes participation from several other development finance institutions, is the OPEC Fund's first sustainability-linked loan.

This innovative financing tool ties the terms of the loan to the achievement of environmental, social, and governance targets, incentivising ETG to improve farmer livelihoods, reduce environmental impacts and enhance food security across sub-Saharan Africa.

"This partnership reflects our commitment to embedding sustainability at the core of our private sector operations," said OPEC Fund president Abdulhamid Alkhalifa. "By supporting ETG's growth, we are addressing food security, strengthening agricultural value chains, and improving the livelihoods of more than 600,000 smallholder farmers in the region."

The financing package, co-arranged by several development finance institutions, underscores the shared commitment of the international community to fostering a more resilient and sustainable agricultural sector in Africa.

This collaborative approach is particularly crucial in the face of ongoing global challenges, such as climate change and supply chain disruptions, which have put strain on the region's food systems.

"The OPEC Fund's longstanding support has been instrumental in enabling ETG to expand its operations and positively impact the lives of smallholder farmers," said an ETG spokesperson. "This latest sustainability-linked loan will further strengthen our ability to drive sustainable development and improve food security across sub-Saharan Africa."

#OPECFund #Africa #agriculture #sustainability