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Agribusiness potential: AfDB and ETG eye stronger alliance

by Staff Reporter
3 August 2023
in Agri News
Reading Time: 4 mins read
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Learning experience: Solomon Quaynor, vice president of AfDB, gains insight from an experienced cashew sorter at a cashew processing plant during his tour in Nampula, Mozambique. Photo: Supplied/AfDB

Learning experience: Solomon Quaynor, vice president of AfDB, gains insight from an experienced cashew sorter at a cashew processing plant during his tour in Nampula, Mozambique. Photo: Supplied/AfDB

Solomon Quaynor, vice president of the African Development Bank Group (AfDB), has wrapped up a tour of the Export Trade Group’s (ETG) southern Africa operations, signalling a potential for a stronger partnership with the agribusiness behemoth to boost livelihoods across Africa.

Quaynor, who is responsible for the private sector, infrastructure and industrialisation, and four other members from the bank, embarked on a tour of ETG’s operations in Mozambique, Malawi, Zambia, and Zimbabwe last week. They witnessed first-hand the impact of ETG’s diverse agribusiness value chains and trade, supported by an extensive array of human capital and assets, including large warehouses and industrial machinery.

The team from the bank included Richard Ofori-Mante, acting director of agricultural finance and rural development; Damian Ihedioha, division manager for agribusiness; Bleming Nekati, chief trade finance officer; and Patrick Mabuza, principal research economist. They were joined by Birju Patel, joint CEO of ETG, and the group chief treasury officer, Paul Van Spaendonk.

Describing the trip as “a development banker’s dream”, Quaynor found the visit to ETG’s integrated agro-industrialisation operations in Mozambique, Malawi, Zambia and Zimbabwe deeply insightful. He acknowledged that with ETG’s presence in over 30 countries, the tour provided a unique opportunity to understand their operations.

Pictured from the left are are Richard Ofori-Mante, Solomon Quaynor, Damian Ihedioha, Birju Patel, Patrick Mabuza, Bleming Nekati, and Paul Van Spaendonk at ETG’s Korosho factory in Nampula, Mozambique, a facility that processes upwards of 300 bags of cashew daily. Photo: Supplied/AfDB
Pictured from the left are are Richard Ofori-Mante, Solomon Quaynor, Damian Ihedioha, Birju Patel, Patrick Mabuza, Bleming Nekati, and Paul Van Spaendonk at ETG’s Korosho factory in Nampula, Mozambique, a facility that processes upwards of 300 bags of cashew daily. Photo: Supplied/AfDB

The four-day trip involved visiting ETG’s fertilizer terminal, an inland container depot, fertilizer processing and blending plants, soya vegetable oil refineries, a cashew processing plant, a textile factory, and large warehouses, some of which stored tonnes of grains.

Interactions with farmer groups, agribusiness cooperatives, and ETG employees also took place, offering the team an in-depth understanding of the scale and diversity of ETG’s activities in Southern Africa. Quaynor utilised the occasion to restate the African Development Bank’s commitment to boost food production in Africa and foster inclusive development by investing in reliable agribusinesses like ETG.

Highlighting the broader impact of ETG’s operations in Africa, Quaynor noted that they encompass industrialisation, empowerment of smallholder farmers and women, job creation, community engagement, sustainability, and value chain development.

Commending the group’s ability to manage its diverse portfolio effectively amidst persistent local and global challenges, Quaynor classified ETG as an innovative agro-industrialist and a financially hedged global company with core operations in Africa.

“We believe that ETG is a committed entity, aspiring to build a brighter future for Africans, with pillars such as gender equality, livelihood opportunities, self-sufficiency, community well-being, environmental stewardship, and collaboration. We are proud to partner strategically with ETG on this remarkable growth journey,” said Quaynor.

Sustaining Africa: Solomon Quaynor, vice president of AfDB, at one of ETG’s vast warehouses, filled to capacity with 15 000 tonnes of grains. ETG is a significant contributor to food security, exporting more than 1 million tonnes of grains annually. Photo: Supplied/AfDB
Sustaining Africa: Solomon Quaynor, vice president of AfDB, at one of ETG’s vast warehouses, filled to capacity with 15 000 tonnes of grains. ETG is a significant contributor to food security, exporting more than 1 million tonnes of grains annually. Photo: Supplied/AfDB

With operations in 48 countries across five regions, ETG has over 90 industrial plants and about 350 large warehouses. Its diverse portfolio includes agriculture, logistics, infrastructure, agro-food processing, energy, minerals and supply chain optimisation, providing massive employment, particularly for youth and women.

Following the visit, the African Development Bank and ETG inked a $150 million trade and agri-finance package. It includes a $60 million facility to enhance export functions, a $60 million agriculture value-chain programme, and a $30 million co-financing from the Africa Growing Together Fund. Disbursement is expected to conclude by the end of August 2023.

Patel, chief executive of ETG, stressed the significant impact of the partnership with the African Development Bank over the last eight years, and ETG’s commitment to continue collaboration aimed at improving livelihoods across Africa.

Patel said, “Our steadfast dedication to enhancing livelihoods through trade facilitation and market linkages, infrastructure development, agricultural support and strategic social investments, remains steadfast. We eagerly anticipate strengthening our relationship with the African Development Bank and creating a positive impact for all our stakeholders.”

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Staff Reporter

Staff Reporter

Researched and written by our team of writers and editors.

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