IHC, DAL Group to invest in $225mln Sudanese agriculture project

IHC Food Holding LLC, a fully owned subsidiary of Abu-Dhabi based listed holding company International Holding Company (IHC), and DAL Group, which is the largest private sector conglomerate in Sudan, announced that the companies have entered into a joint agreement to develop and cultivate farm land in Abu Hamad, River Nile State, Sudan.

The joint agreement will see a five-year investment plan of over $225 million put into the transformation and development of over 100,000 acres into farmland. The farm is expected to reach a maximum annual output of over 400,000 metric tonnes of agricultural crops for consumption and export purposes. Once fully developed, this will help generate approx. $1 billion in export revenues for Sudan over the next 10 years. It is also expected to create new employment for more than 5,000 people in Sudan, including on the farm as well as part of the ancillary services to support the farm.

Mamoon Othman, IHC Food CEO, said: "The agriculture sector has become very important for our business. We need to ensure our long-term goal of safeguarding farm-to-fork supply chains in an efficient and sustainable manner, and this type of impact capital will get us there. This farming project will help secure high-quality agricultural output and drive further integration into our vertical supply chain."

The project itself will utilise the industry's leading best practices and modern technology. This will include automated pivots using drip-irrigation, which will minimise water wastage, while the latest farming technology will maximize farm productivity. The farm has scope to expand further in terms of size and scale.

Osama Daoud Abdellatif, chairman at DAL Group, added: "We are excited about this partnership and what it will bring to Sudan. It will create local community development opportunities in rural areas and invest in technologies specific for our country that optimize agricultural methods. Our main focus is to protect the environment and ensure sustainability by minimizing water wastage and creating a sustainable, long-term future."

IHC Food Division is a key industry vertical within IHC Group. It incorporates four businesses: fishery, animal feed, poultry and distribution. Its short and long-term strategy is to improve food security in the UAE and become a world leader within its food verticals.