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Overview

AGTF provides $30 million loan to Dal Group Company Limited for Phase II Project (Linked to Umbrella Record ID#36104)

Commitments (Constant USD, 2023)$28,347,574
Commitment Year•2022Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 15, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • African Development Bank (AfDB) (ADB) (BAD)

Receiving agencies

Intergovernmental Organizations

  • Africa Growing Together Fund (AGTF)

Private Sector

  • Dal Group Company Limited

Implementing agencies

Private Sector

  • Dal Group Company Limited

Loan description

AGTF provides $30 million loan to Dal Group Company Limited for Phase II Project in 2022

Interest type•Unknown

Narrative

Full Description

Project narrative

On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB. Then, on November 15, 2022, AGTF approved a $30 million loan agreement (ID#5050230001051) with Dal Group Company Limited for the Phase II Project. On the same day, the African Development Bank (AfDB) approved a $100 million loan (ID#2000230030151) for Dal Group Company Limited in support of the Phase II Project. The borrowing terms of these loans are unknown. The purpose of the project is to support phase II of Dal Group Company Limited’s long-term investment and regional expansion program with a focus on its integrated food and agriculture operations and growing the company’s regional agro-industrial network.

Staff comments

1. The AfDB project identification number is P-Z1-AAG-043. 2. Dal Group Company Limited is recognized as a regional industrialist and has an established local and export (regional and international) market. With its regional commodity and distribution hubs the company is well positioned to further extend its outreach into new regional (East & Central Africa) and other international markets (Middle East, USA, Asia, and Europe). The market outlook for food and drink in sub-Saharan Africa is positive and the project brings the company closer to a multibillion-dollar regional Agri-Food market which provides an excellent growth potential for DAL Group especially in the wake of the AfCFTA.