ETC Group
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
ETC Group (“ETG”) is a diversified agricultural conglomerate that has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and food ingredients, energy, metals, technology and supply chain optimization. ETG has built its business by linking small-holder African farmers to a diverse pool of global buyers and efficiently managing this value chain. It started operations in 1967 in Kenya by distributing and marketing products manufactured by multinational companies in the country to East Africa and has since diversified operations globally (45 countries spanning 6 continents) with most operations still centred around Africa.
What is our funding objective?
To support ETG to phase out coal firing, through piloting and developing technologies and processes which are envisioned to provide replacement energy sources in 12 existing soya and sunflower crushing and refinery facilities in Zambia, Malawi, and Zimbabwe, as well as new coal-firing facilities built or purchased in the future that would expand coal-firing capacity. In particular, our funding will support biomass availability studies at the country and farmer level, to inform ETG’s understanding of supply chain risks and to develop a strategy for biomass type, sourcing regions, costs and process.
Why do we fund this investment?
FMO pledged to phase out fossil fuels, including coal, from our portfolio to reach a ‘net zero’ portfolio by 2050. ETG is committed to phasing out coal and being an innovator and as part of the Sustainability Linked Loan (SLL) has committed to significant GHG emission reductions. However, there are significant upfront costs and risks to pilot and develop new technologies and processes that do not yet exist at scale, with the quality required, in Africa. Therefore, we fund this project to promote the transition to more sustainable energy sources. ETG is one of AFW’s largest customers and will act as a flagship example of this transition with our support.
More investments
| Date | Total FMO financing |
|---|---|
| 11/20/2024 | USD 149.00 MLN |
| 7/18/2019 | USD 25.50 MLN |
- Country
- Global
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 1/20/2026
- Effective date
- 12/13/2024
- Total FMO financing
- EUR 0.15 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+