|Approval Date||13 Dec 2018|
|Signature Date||05 Mar 2020|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Agriculture and Rural Development|
|DAC Sector Code||31110|
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.
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.
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.
African Development Bank
|Last Update||07 Aug 2020|