A lease and collaboration agreement has been inked between Emirati companies DP World, a world leader in global supply chain solutions, and IFFCO, a global multi food products group, for an edible oil packing plant in the Berbera Economic Zone (BEZ) in Somaliland.
IFFCO Somaliland, IFFCO Group’s subsidiary, signed a 25-year lease with BEZ to develop a 300,000 sq ft packing facility with future expansion plans. On completion of the first phase of the construction expected to begin in the first half of 2023, the oil packing plant will create hundreds of jobs for ethnic Somalis.
The agreement was signed in Dubai by Suhail Al Banna, CEO and Managing Director of DP World, Middle East & Africa, and Rizwan Ahmed, IFFCO Group’s Executive Director.
DP World plans to develop the BEZ by investing in the Port of Berbera to create an integrated maritime, logistics, and industrial hub to serve the Horn of Africa, a dynamic, ever-evolving region with a population of 140 million people and strategically located along major sea and land trade routes. DP World’s investment in Somaliland is in partnership with British International Investment (BII), the UK government’s development finance institution and impact investor.
The BEZ has been developed around a customer-centric ecosystem, where DP World is not only developing the zone but will also operate the one-stop shop for company registration and licensing, logistics, and built-to-suit services.
DP World’s Al Banna says, “We are delighted to welcome a major multinational company like IFFCO to the Berbera Economic Zone. IFFCO’s decision to set up a plant is a major vote of confidence in the zone and a testament to our offerings. With the port, the economic zone, and the one-stop shop all under DP World, it will be a home away from home for Dubai-based customers like IFFCO. The zone will also have a positive impact on the local and regional economy by creating jobs and attracting more foreign direct investments to Somaliland.”
On his part, Director and supervisory board member of IFFCO Group Shiraz Allana comments, “IFFCO continues to invest in the future of food and supply chains globally. We currently operate 95 facilities, including several port-based manufacturing facilities worldwide. This partnership with DP World shows our commitment to the UAE’s national food security strategy and facilitating global food trade. This project will further enhance quick and efficient access to African consumer bases.”