Sudan – DAL Group Co. Limited


Project Summary

Approval Date 13 Dec 2018
Signature Date 05 Mar 2020
Sovereign / Non-Sovereign Non Sovereign
Sector Agriculture and Rural Development
DAC Sector Code 31110
Commitment U.A 53,254,722.86
Status Implementation

Project General Description

The proposed facility is a multi-currency loan equivalent to US$75 million to DAL Group Co. Ltd – one of Sudan’s largest food and agriculture business groups. This is African Development Bank’s first private sector loan in Sudan. The Bank loan will contribute to DAL Group’s Investment Program, part of the company’s strategic growth initiative for Sudan and the East African region. Under this program, DAL Group aims to reduce the nation’s dependence on imports and increase its capacity to source and produce raw material locally. 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. The investment complements other non-lending interventions of the African Development Bank Group in Sudan. 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. 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 its vision to provide affordable basic staple food to Sudan and the rest of Africa.

Project Objectives

The transaction aims 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. 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.

Beneficiaries

The DAL Group employs over 8,200 people and with the new support from the African Development Bank, the Group will be in a position to create over 2,000 additional jobs over an 8-year period. The financing will also support DAL Group initiatives toward creating a conducive work environment for women and promoting equal opportunity for employment, such as up-skilling and training, creating an adapted industrial working environment that accommodates the cultural needs of women, as well as family-friendly work schedules and social benefits.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-SD-AAZ-009
Last Update 07 Aug 2020

Export

Contact Details

Email private-sector@afdb.org

Geographic Location

Country Sudan