IHC Food Holding, a subsidiary of Abu-Dhabi-based listed holding company International Holding Company (IHC), on Monday announced plans to develop and cultivate farmland in Sudan in a $225 million deal.
The partnership with DAL Group, which is the largest private sector conglomerate in Sudan, will focus on farmland in Abu Hamad, River Nile State, Sudan.
The joint agreement will see a five-year investment plan put into the transformation and development of over 100,000 acres.
The farm is expected to reach a maximum annual output of over 400,000 metric tons of agricultural crops for consumption and export purposes.
Once fully developed, this will help generate about $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.”
Osama Daoud Abdellatif, chairman, 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.”
The project will use modern technology including automated pivots using drip-irrigation, which will minimize water wastage, while the latest farming technology will maximise productivity.
The farm has scope to expand further in terms of size and scale, the companies said in a statement.
IHC Food Division incorporates four businesses – fishery, animal feed, poultry and distribution.
International Holding Co has operations in the UAE, Middle East, Europe, and North America through 12 subsidiaries. In the first half of 2020, it posted revenues of AED2.5 billion and net profit of AED814 million.