SUDAN– The African Development Bank (AfDB) has approved a multi-currency loan equivalent to US$75 million to DAL Group Co. Ltd, one of Sudan’s largest food and agriculture business groups.
The investment, the first private sector investment by the AfDB in Sudan, will support the expansion of the company’s vertically integrated food and agriculture operations to transform the Sudanese agriculture and food industry.
“By partnering with DAL Group, the Bank will leverage on Sudan’s high agricultural potential as well as the experience and resilience of a private enterprise with a proven track record and deep knowledge of the country’s unique business environment,” said Atsuko Toda, the Bank’s Director for Agriculture Finance and Rural Development.
US$ 75 million – Value of AfDB’s investment in DAL Group, which is a diversified group with operations in agriculture, food processing and other ventures
AfDb says that by strengthening its integrated value chain model, adopting the latest technologies, and expanding its food processing and packaging capacity, the DAL Group will enhance its ability to source and produce raw material locally and increase the range of its product offering.
This is in line with DAL’s vision to provide affordable basic staple food to Sudan and the rest of Africa.
DAL Group is one of the most diversified food and agriculture players in Sudan.
The company has leading manufacturing operations in the dairy, beverages (as Coca-Cola’s bottler in Sudan), milling, animal feed and pasta.
In agriculture, the group has some of Sudan’s largest agriculture businesses including crop farming the production of alfalfa (some exported to Saudi Arabia), maize (for animal feed), local wheat (for pasta) and is in the process of testing a number of other crops for future diversification.
The approval is in line with the priority development objectives of the African development Bank Group and consistent with the Bank’s action plan for African agricultural transformation – Feed Africa.
The Bank’s Feed Africa strategy focuses on transforming African agriculture into a globally competitive, inclusive and business-oriented sector that creates wealth, generates gainful employment, and improves quality of life.
The transaction presents an opportunity for the Bank to leverage private sector investments which have considerable development outcomes and additionality and to support an otherwise underserved Transition State.
The AfDB adds that it will also contribute to broad-based economic growth, build resilience and address food security as well as promote private sector-led economic diversification by bringing to scale, an existing and successful private sector initiative.