The OPEC Fund for International Development (OPEC Fund) has signed a $40 million loan as part of a $394 million sustainability-linked loan for ETC Group (ETG), one of Africa’s largest agricultural commodity supply chain managers.
The OPEC Fund is an international development finance institution established by member countries of the Organization of the Petroleum Exporting Countries (OPEC) in 1976. Its mission is to provide financial support for development projects in low- and middle-income countries, particularly in sectors such as infrastructure, energy, healthcare, education, and agriculture.
The financing will enhance ETG’s working capital, strengthen food systems, and support the livelihoods of more than 600,000 smallholder farmers across sub-Saharan Africa.
This is the OPEC Fund’s first sustainability-linked loan, a financing tool that ties lending terms to meeting environmental, social, and governance (ESG) targets. The loan incentivizes ETG to improve farmer livelihoods, reduce environmental impacts, and enhance food security.
Abdulhamid Alkhalifa, OPEC Fund President, said that, “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.”
The OPEC Fund President further noted that this partnership also reflects our commitment to embedding sustainability at the core of our private sector operations.
The OPEC Fund offers a range of financial products, including loans, grants, and technical assistance, to help foster sustainable development and improve living standards in developing nations. It collaborates with other development agencies, governments, and private sector organizations to support projects that contribute to poverty reduction, economic growth, and environmental sustainability.
