The OPEC Fund for International Development (OPEC Fund) has announced the signing of a $40 million sustainability-linked loan as part of a $394 million financing package for ETC Group (ETG), a leading agricultural commodity supply chain manager in Africa.
The funds aim to boost ETG’s working capital, enhance food systems, and support the livelihoods of over 600,000 smallholder farmers across sub-Saharan Africa. This initiative marks the OPEC Fund’s inaugural sustainability-linked loan, tying financial terms to achieving environmental, social, and governance (ESG) targets.
Abdulhamid Alkhalifa, President of the OPEC Fund, emphasized the significance of the initiative, stating, “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.”
The loan incentivizes ETG to advance farmer livelihoods, minimize environmental impacts, and enhance food security, aligning with the broader goals of sustainable development in the region.
