Citadel Capital / Sabina and Al Nahda for Integrated Solution’s Irrigated Crops in White Nile State, Sudan

Description

Citadel Capital is Egypts largest private equity company. In 2007 it launched the Wafra Fund to invest in agriculture in Sudan, in which the company's holdings have since increased to three distinct sites and companies. In Sudan, the fund has since acquired a 30-year lease (renewable for up to 90) on 106,680 ha for wheat farming, by way of its subsidiary Sabina, and 25,210 ha for rice production, by way of another subsidiary, Al-Nahda for Integrated Solutions (or El-Nahda). The company has since harvested produce on both sites. In November 2011, the US governments Overseas Private Investment Corporation provided Citadel with a US$150-million loan package to help expand its subsidiaries. No information is available after 2012 harvest reports, in which Sabina harvested 2100 ha of hybrid sorghum (although the website states Sabina's holdings are mostly intended for sugar cane, with a small portion to other cash crops). El-Nahda intends to grow high-quality rice to be processed at a mill they will construct on-site, and flooding will be controlled by a major levee bank. Citadel Capital's website claims Sabina will allocate US$ 395,000 annually (for the next four years) to 'rehabilitate schools and establish vocational training programs for farmers'. No record of an EIA or formal agreement with the government was found, nor studies or input from local residents.

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Basic Data
NameCitadel Capital / Sabina and Al Nahda for Integrated Solution’s Irrigated Crops in White Nile State, Sudan
CountrySudan
ProvinceWhite Nile State
SiteNear Kosti
Accuracy of LocationMEDIUM regional level
Source of Conflict
Type of Conflict (1st level)Biomass and Land Conflicts (Forests, Agriculture, Fisheries and Livestock Management)
Type of Conflict (2nd level)Deforestation
Land acquisition conflicts
Intensive food production (monoculture and livestock)
Specific CommoditiesCorn/Maize
Rice
Wheat
Cotton
Sugar
Sunflowers, Sorghum
Project Details and Actors
Project DetailsIn Sudan, the fund has acquired a 30-year lease (renewable for up to 90) on 106,680 ha for wheat farming, by way of its subsidiary Sabina, and 25,210 ha for rice production, by way of another subsidiary, Al-Nahda for Integrated Solutions.

Project Area (in hectares)131,890
Level of Investment (in USD)20,000,000
Type of PopulationRural
Start Date2008
Company Names or State EnterprisesCitadel Capital (Citadel) from Egypt
International and Financial InstitutionsOverseas Private Investment Corporation (OPIC) from United States of America
The Conflict and the Mobilization
Intensity of Conflict (at highest level)UNKNOWN
When did the mobilization beginUNKNOWN
Groups MobilizingInternational ejos
Forms of MobilizationCreation of alternative reports/knowledge
Involvement of national and international NGOs
Outcome
Project StatusIn operation
Do you consider this as a success?No
Why? Explain briefly.The project continues, and no studies or knowledge of specific impacts are available.
Sources and Materials
Links

, 'Wafra Portfolio Company to build Sudans first large-scale commercial rice farm'
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[click to view]

's-first-large-scale-commercial-rice-farm/
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Citadel Capital, 'WAFRA',
[click to view]

Citadel Capital, 'Responsible Investing'
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Citadel Capital, 'Wafra Portfolio Company to Build Sudan's First Large-Scale Commercial Rice Farm'

Other CommentsCitadel Captial Holdings lists some 19 companies on their website, ranging from energy to shipping to agriculture to mining.

Wafra intends to expand. From their website (October 7, 2013): 'Wafra continues to explore complementary regional development initiatives and expects to develop into a significant player in the agriculture sector.' However, also from their website: 'Management bandwidth has been under strain since the events of the Arab Spring as the region copes with increased social unrest and a less-troublefree environment.' Communication regarding the project has been sporadic since the events in 2011.
Meta Information
ContributorAliza Tuttle
Last update24/06/2014
Comments