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 transaction is expected to 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.
“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.
The investment will also facilitate expansion of the company’s vertically integrated food and agriculture operations that seeks to transform the Sudanese agriculture and food industry.
As one of the country’s largest food and agriculture business group in Sudan, DAL becomes the first company to receive a private sector investment from AfDB in Sudan.
In its strategy DAL Group aims to strengthen its integrated value chain model, adopt the latest technology, and expand its food processing and packaging capacity.
This will enhance the company’s capacity to locally source and produce raw materials and increase its market mix.
DAL said that this is in line with its vision to provide affordable basic staple food to Sudan and the rest of Africa.
The approval comes as part of the bank’s commitment to transform the agricultural sector in Africa through the Feed Africa program.
The transaction presents an opportunity for the bank to leverage private sector investments which have considerable development potential that support an otherwise under-served transition state.
The investment complements other non-lending interventions of the African Development Bank Group in Sudan.
AfDB through Feed Africa 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.
