TDB agrees US$100mn trade finance facility with Export Trading Group

TDB agrees US$100mn trade finance facility with Export Trading Group

The Eastern and Southern African Trade and Development Bank (TDB) has provided a US$100mn trade finance facility to commodity trader Agri Commodities and Finance in a bid to support smallholder farmers.

The borrower is a wholly owned United Arab Emirates-based subsidiary of agricultural supply chain manager Export Trading Group (ETG).

According to TDB, the facility aims to combat supply chain disruption and rising inflation while helping to bridge the trade finance gap. It will target smallholder farmers in Africa by funding the import of fertilisers and seeds as well as the purchase of commodities like coffee, cocoa and cashew nuts from farmers in TDB member states.

The loan “will facilitate intra and extra-regional trade flows, and boost forex revenues, to the benefit of member states’ balance of payments”, TDB says.