SCB invests $74m in ETG

STANDARD Chartered Bank (SCB) Africa's private equity division has invested $74 million to acquire a minority stake in Export Trading Group (ETG) Group Mauritius (ETG) in a deal that values the company at over $500 million.. ..ETG is a leading integrated agricultural supply chain manager in East and Southern Africa.According to a statement from SCB, the initiative was a demonstration of the bank's commitment to the sustainable development of Africa's agricultural sector, leveraging the financial institution's private equity capabilities and expertise.ETG originates, processes and distributes soft commodities primarily in sub-Saharan Africa, India and China. It will use the funds to boost its leading positions in core markets as well as expand into new geographies.The Director in Standard Chartered's Africa Private Equity team, Ronald Tamale, commented: 'Given that over 60 per cent of the world's arable land is in Africa, the African agri-sector holds considerable growth potential. ETG, with its East African origins, is a long-standing client of the bank. We look forward to enhancing our support of the group's management team, promoting their robust growth strategy and vision.'ETG's African footprint is closely aligned with Standard Chartered's presence in Africa. Besides, the bank's Middle East and Asia network provides ETG with additional value in potential trade and business links over the long term.The Managing Director of ETG, Ketan Patel said: 'Standard Chartered has been a valuable financial partner to us for many years.'This investment is testament to the bank's deep understanding of our business, proactive recognition of and commitment to our growth potential.'ETG has predominantly funded its growth from internal sources for the last 30 years. This capital investment enables us to take our business to the next level.'Since 2008, Standard Chartered's Africa Private Equity team has invested nearly $400 million into entrepreneurial African companies in multiple sectors.The Africa Private Equity team, with offices in Johannesburg and Lagos, complements the bank's international private equity capabilities in Asia and the Middle East.
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