OPEC Fund signs loan to boost agriculture in Africa

Monday, 2 December 2024 10:03

By ARN News Staff

The OPEC Fund for International Development (the OPEC Fund) has signed a $40 million loan as part of a $394 million sustainability-linked loan for ETC Group (ETG), one of Africa’s largest agricultural commodity supply chain managers.

The financing will enhance ETG’s working capital, strengthen food systems and support the livelihoods of more than 600,000 smallholder farmers across sub-Saharan Africa.

This is the OPEC Fund’s first sustainability-linked loan, a financing tool that ties lending terms to meeting environmental, social and governance (ESG) targets. The loan incentivizes ETG to improve farmer livelihoods, reduce environmental impacts and enhance food security.

Abdulhamid Alkhalifa, OPEC Fund President, said, "Our first sustainability-linked loan demonstrates the OPEC Fund’s dedication to fostering sustainable development through innovative financing. Our strong and longstanding partnership with ETG enables us to address food security, strengthen agricultural value chains and improve the livelihoods of smallholder farmers in sub-Saharan Africa. This partnership also reflects our commitment to embedding sustainability at the core of our private sector operations."

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