Agricultural value chain sustainability-linked loan — Export Trading Group

Project Description

The project supports ETG in strengthening its agricultural value chain through improved processing facilities, storage, and access to inputs for farmers. The financing leverages a Sustainability-Linked Loan (SLL), which ties favorable loan terms to ETG’s achievement of six sustainability KPIs, including emissions reduction, reforestation, zero deforestation, and gender empowerment.

The initiative aims to enhance food security, promote climate resilience, and empower over 350,000 farmers, with a strong focus on women’s inclusion.

Project Objectives

• Boost Agricultural Productivity: Strengthen infrastructure to reduce post-harvest losses, enhance operational efficiency, and provide farmers with improved inputs and support systems.
• Promote Sustainability: Achieve environmental and social targets tied to SLL KPIs, including emissions reduction, reforestation, and zero deforestation in high-risk supply chains.
• Empower Women: Increase women’s participation through targeted initiatives, ensuring 25% of the 350,000 trained farmers are women and supporting women-led cooperatives.
• Enhance Climate Resilience: Support sustainable farming practices, renewable energy adoption, and agroforestry expansion to build long-term resilience for farmers.

Expected Outcomes

• 1,278 new jobs created, contributing to total employment of over 4,200 across the agricultural value chain.
• 350,000 farmers supported and trained in sustainable practices, with 25% being women.
• Greenhouse gas emissions reduced, aligning with climate mitigation targets under the SLL framework. Zero deforestation achieved in high-risk supply chains, ensuring sustainable land use.
• 500,000 trees planted to restore critical landscapes, contributing to reforestation targets.
• Improved farmer support systems: Enhanced access to inputs, financing, and market linkages, boosting productivity and financial inclusion.