The African Development Bank has approved its first private sector investment in Sudan in 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, approved on 13 December 2018, 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.
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 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. 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.
The investment complements other non-lending interventions of the African Development Bank Group in Sudan.