African Development Bank signs private sector loan to provide $75 to Sudan

The African Development Bank has signed an agreement with DAL Group, one of Sudan’s largest conglomerates, for the provision of up to $75 million to improve food security and household incomes in the country. The agreement is the Bank’s first private-sector loan to the East African nation.

The financing facility comes in the form of a senior corporate loan of up to the equivalent of $75 million in multiple currencies, which includes $40 million and EUR 30 million.

DAL Group is Sudan’s largest food and agriculture business company. 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.

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.

“This is the African Development Bank’s first private sector loan in Sudan. I am delighted that it is in agriculture and agri-business, which is so important for Sudan’s development,” said  Dr. Jennifer Blanke, Bank Vice President for Agriculture, Human and Social Development. 

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.

The transaction also presents an opportunity for the Bank to leverage private sector investments which have considerable development outcomes and additionality, as well as an opportunity to support an otherwise underserved Transition State.

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.

Original source: AfDB
Published on 10 March 2020