Export Trading Group Guarantee

completed

Export Trading Company (ETC) Tanzania Limited, Agri Commodities & Finance FZE and their affiliated companies (collectively “Export Trading Group” or ETG or “Sponsor”) are leading commodity supply chain operators based in East and Southern Africa. ETG’s main businesses include: - Trading and distribution of agricultural products and fertilizers, - Farming of a range of agricultural commodity crops, - Processing of some of these commodities and - Investments in information technology, mining, leisure, forestry and logistics. ETG has developed competitive position in origination, storage and transportation capabilities and diversification into new production and markets, and has achieved strong growth in its agricultural commodity trading. ETG plans to expand its trading operations and has requested an additional US$120 million financing (the “Project”). Financing will include a US$100 million collateral-backed facility and US$20 million overdraft. The proposed IFC financing is to provide a 50% guarantee for each of the facilities with total IFC guarantee of up to US$60 million. ETG is headquartered in Dar es Salaam and has regional offices in 12 countries, namely South Africa, Zimbabwe, Zambia, Malawi, Mozambique, Tanzania, Kenya, Uganda, Ethiopia, Sudan, United Arab Emirates (UAE) and India. The facilities under the Project will be used to purchase soft commodities for the import from and export to Tanzania, Nigeria, Zambia, Kenya, Malawi, Mozambique, Ethiopia, Uganda, Ghana, Ivory Coast, Guinea Bissau, Benin, South Africa and India. Around 70% of ETG’s trading business by volume is export of agricultural commodities and 30% is import of fertilizer and rice. A significant percentage is unprocessed/semi-processed commodities. The commodities are simply cleaned, graded, packaged and exported either locally or within the region (50%) or deep sea export via Dubai (50%). A small percentage of the commodities traded are processed into final products of which 10% are sold locally within the region and 90% exported. ETG currently trades in maize, pigeon peas, wheat, soya beans, beans, cashew nuts, yellow garm, sesame seeds, sugar, green garm, groundnuts, cow peas, millets, tea, chick peas, sorghum, ginger, cloves, coriander seeds, cumin seed, linseed and Niger seed. Maize constitutes the largest commodity by volume. Since 2002 the Group began investing in agriculture processing and the Group’s interest in this area includes agricultural processing plants in Zambia, Malawi, Mozambique, Tanzania, Uganda and India.