ETG – Export Trading Group

East Africa, Africa Food and agriculture

ETG is an African agribusiness with operations in crop buying, warehousing, distribution and merchandising that employs over 7,000 people and reaches hundreds of thousands of small-scale farmers.

Founded in 1967, the company owns and manages a vertically-integrated agriculture supply chain with operations in procurement, processing, warehousing, transport, distribution and merchandising.

  • Active
  • Exited

Our investment

In 2012, we directly invested $32.5 million in ETG. At that time its turnover was $884 million. When we sold our stake in 2016, its turnover had increased to $2.8 billion.

Expected impact

Africa has around 600m hectares of arable land for farming. With the global demand for food increasing, African countries are well placed to help meet this need.

However, nearly 70 per cent of farmers in Africa are subsistence farmers. With the right training, support and access to markets, these farmers can increase their output and generate additional income.

The aim of our investment was to connect smallholder farmers to global markets and build additional warehouses and food processing plants. Over the course of our investment, the company was able to create 2,000 direct jobs in its warehouses and food processing plants, in addition to the 3,000 people it already employed.

By growing food processing revenue, we were also able to reduce crop wastage and provide farmers with a bigger market for their produce.

Environmental and social aspects

CDC worked with the company, as well as other investors and lenders, to enhance the environmental and social impact of ETG's trading operations.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Tanzania
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Debt, Direct Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
November 2012
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$132.5m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

We are invested in ETG - Export Trading Group through Pembani Remgro Infrastructure Mauritius Fund I LP, which is managed by Pembani Remgro MU GP Limited.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, CDC takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Tanzania
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Pembani Remgro Infrastructure Mauritius Fund I LP
Fund Manager:
Pembani Remgro MU GP Limited
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
November 2012
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

We are invested in ETG - Export Trading Group through European Financing Partners IV, which is managed by European Financing Partners.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, CDC takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Tanzania
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
European Financing Partners IV
Fund Manager:
European Financing Partners
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2013
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius