The OPEC Fund for International Development (OPEC Fund) has finalised a $40 million loan as part of a $394 million sustainability-linked financing package for ETC Group (ETG), one of Africa’s leading agricultural commodity supply chain managers. The loan aims to bolster ETG’s working capital, strengthen food systems, and improve the livelihoods of over 600,000 smallholder farmers across sub-Saharan Africa.
Marking its first sustainability-linked loan, the OPEC Fund ties this financing tool to meeting environmental, social, and governance (ESG) targets. The agreement incentivises ETG to advance farmer welfare, reduce environmental impact, and enhance food security across the region.
OPEC Fund President Abdulhamid Alkhalifa 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.”
