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Export Trading Group Guarantee
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 28472
Eastern Africa Region (IDA)
Sector1Grains and Beans
Environmental categoryB
Date SPI disclosedOctober 23, 2009
Projected board dateDecember 3, 2009
Previous EventsSigned: May 26, 2010
Approved: December 10, 2009
View Environmental & Social Review Summary (ESRS), click here
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Project description
Export Trading Group (ETG) is a leading commodity supply chain operator based in East and Southern Africa. Its main businesses include (a) trading and distribution of agricultural products and fertilizers, (b) farming of maize, rice, soybean, wheat, etc., (c) processing of maize, pigeon peas, rice, etc. and (d) investments in information technology, mining, leisure, forestry and logistics. ETG is composed of about 75 entities (some of them dormant) and employs about 3,000 permanent staff.

ETG achieved strong growth in its trading operation due to the increase in the global demand for commodities and the group’s competitive positioning (strong origination, storage and transportation capabilities and diversification into new products and markets). To take advantage of its leading position, ETG plans to expand its trading operation by obtaining additional trade finance facilities (the “Project”). The proposed IFC investment is to provide guarantees for the trade finance facilities under the Project.