Export Trading Group (ETG), Africa’s largest integrated conglomerate, has signed a $400-million revolving global credit facility agreement with Afreximbank, an Egypt-based bank.
Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, told the media, “This facility will not only support African farmers through the disruption caused by the pandemic but will provide added impetus to ETG’s vital work connecting the continent’s small and medium businesses to the agricultural networks and avenues critical for growth.”
It is reported that the funds will cater to the needs of African agricultural exporters, while empowering small and medium-scale enterprises by aggregating large volumes of produce to allow them trade in regional and international markets. On the other hand, the funds will assist ETG to expand access to primary inputs to ramp up agricultural productivity in Africa.
The expansion will also boost the scale and productivity of African farmers and position the continent among the top breadbasket of the world and also reduce the post harvesting losses in Africa.
It is reported that Africa, a continent which has abundant natural resources, sees yearly downfall in its farm to market agricultural production of up to 50 percent due to challenges such as improper post-harvest storage, processing and transportation facilities.
These challenges are further intensified by the pandemic due to price volatility, supply chain disruption and low household consumption.
Furthermore, stats by Afreximbank indicate that Africa’s food imports worth $90 million last year despite possessing large percentage of the world’s agricultural land.