On March 16, 2021, the Japan International Cooperation Agency (JICA) signed a loan agreement for USD65 Million with ETG, a global conglomerate with a diverse portfolio of expertise across various industries. The facility will support the agri value chain and increase value addition through processing capabilities.
Agriculture is an essential industry, providing employment for majority of the working population in the region. There is vast potential for value addition initiatives to the industry as a whole, including the expansion of logistical capabilities and processing sectors. The objective of this collaboration is the strengthening of supply chains and investment in value addition – prudent steps towards advancing economic growth. The processed products will be for distribution and consumption in the Southern African region with majority of the raw material procured from local emerging farmers.
Anish Jain, Chief Treasury Officer of ETG commented: "ETG remains committed in its pursuit to maintain local processing of agricultural commodities in Africa. We are humbled by the support that JICA offers the continent to achieve sustainability and prosperity. We believe that this facility is a sound step towards building a sustainable future."
Shohei Hara, Director General, Private Sector Partnership and Finance Department of JICA said: "We are very pleased to strengthen the relationship with ETG by inking this first loan agreement with ETG. JICA expects that this new investment of ETG enhances agricultural value chains as well as livelihoods of smallholder farmers in the region."
In May 2018, JICA signed a memorandum of cooperation (MOC) with Mitsui & Co., Ltd. (One of ETG’s shareholders) and ETG; to collectively support Africa in its strive towards achieving Sustainable Development Goals (SDGs). This loan agreement is associated with the previously mentioned MOC.
ETG has developed into a global player with a diverse portfolio of expertise across various industries, encompassing agricultural inputs, logistics, merchandising, food processing and supply chain optimization. For more information, please visit www.etgworld.com
Japan International Cooperation Agency (JICA), an incorporated administrative agency in charge of administering Japan’s ODA, is one of the world’s largest bilateral aid agencies supporting socioeconomic development in developing countries in different regions of the world.