![[Kenya] Hashi Energy ventures into food supplies through $140 million deal with SS Lootah](Hashi energy.png)
[Kenya] Hashi Energy ventures into food supplies through $140 million deal with SS Lootah
Oil industry player Hashi Energy has entered into a $140 million deal SS Lootah, a Dubai venture firm allowing it to move into the supply of food to the military and non-governmental institutions in the Democratic Republic of Congo.
Under the arrangement, the firm will build storage facilities and infrastructure for food and fuel supplies.
Hashi Energy already transports and stores petroleum products in a deal it has with the United Nations mission in DRC.
“Our focus is the military-like base. It is remote, in places without much infrastructure. Food diversification comes in because we now have a partner who has got over 40 years experience in the industry,” said Hashi Energy group chief executive Mohamed Adan.
The United Nations mission for the stabilisation of the DRC had over 19,000 personnel as of June 2015, and the market niche may prove lucrative for Hashi — which is known for its interests in distribution of petroleum products in Kenya.
Mr Adan said that the company will seek to expand logistic operations into other countries in the region including the Central African Republic (CAR), Chad and Burundi.
SS Lootah is 60 years old with interests in construction, trading and energy. The deal with Hashi is part of the company’s growing interests in Africa.
The company has invested in Tanzania’s energy sector while Dubai Islamic Bank, partly owned by the Lootah family, is seeking entry into the Kenyan market.
Executives from SS Lootah were recently in the country as part of a delegation led by the Dubai Chamber of Commerce and Industry. The delegation held talks with public and private sector leaders.
The chamber has opened its first representative office in Nairobi. It hopes to increase trade with Kenya as part of a push by the United Arab Emirates to expand non-commodity investments in the country.
