ETG REGIONAL EXPANSION (AFRICA)

Promoter – Financial Intermediary

ETC GROUP

Location

• Regional - Africa

Description

The project consists of activities supporting: (i) the modernisation and upgrade of existing production facilities, (ii) the expansion and vertical integration of the Promoter's operations along their value chains, as well as (iii) the expansion of the extension services provided by the Promoter at granular level in the countries of the project.

Objectives

The project will finance investments promoting a competitive locally rooted agro-industry, resilient to climate change, providing decent jobs, the lack of which is considered market failure. The project is expected to alleviate negative environmental and climate externalities, by using the best available solutions in energy, water and residue management, among others. The project will further reinforce access to agricultural production inputs; some of these will be formulated according to local soil and climate needs, resulting in clear productivity and environmental gains on existing agricultural land.

Sector(s)

• Industry - Manufacturing
• Education - Education

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

USD 110 million (EUR 102 million)

Total cost (Approximate amount)

USD 220 million (EUR 204 million)

Environmental aspects

The project is expected to contribute to the Climate Action and Environmental Sustainability (CA&ES) objectives. In particular, the project is expected to have a significant impact on Climate Change Adaptation and pollution prevention and control, via the activities proposed under the Farmers Extension Services component, developed with the rural communities. The EIB will ensure that the project is based on good practices, notably in terms of the sustainable management of natural resources, contributing to strengthening the resilience of agriculture and populations in the face of climate change, as per the Bank's Climate Roadmap. If located within the EU, the components of the project would fall under the scope of Annex II of the EIA Directive 2011/92/EU as amended by the EIA Directive 2014/52/EU and would be subject to determination of the need for a full environmental impact assessment (EIA) process including public consultation by the local authorities. During the appraisal, the environmental and social impact assessment (ESIA) process (including the public consultations) will be analysed, with particular attention given to emissions to air and water. Food safety aspects will be also given full consideration.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Approved - 13/12/2023