AFRICA – DP World, a multinational logistics company based in Dubai, has partnered with the UK’s development finance institution and impact investor CDC Group to create a US$1.7 billion investment platform aimed at modernization and expansion of ports and inland logistics across Africa, starting in the ports of Dakar in Senegal, Sokhna in Egypt and Berbera in Somaliland.
Trade enabled through the ongoing expansions is expected to create an additional 138,000 employment opportunities in the wider economy and by 2035, the ports are expected to support stable employment for around 5 million people indirectly.
The platform covers a long-term investment period. DP World is contributing its stakes in three existing ports initially and expects to invest a further US$1 billion through the platform over the next several years.
CDC is committing approximately US$320 million initially and expects to invest up to a further US$400 million over the next several years.
Owned by the UK Government, CDC is the UK’s development finance institution and impact investor with over 70 years of experience successfully supporting the sustainable, long-term growth of business in Africa and South Asia.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said: “We are excited to announce a partnership with CDC Group that will enable increased investment in ports and logistics infrastructure across Africa, driving efficiency and trade growth. The partnership will create transformational opportunities for tens of millions of people over the next decade.”
“By combining our in-depth knowledge of ports and logistics and CDC’s expertise in infrastructure investment in Africa, we can drive greater supply chain efficiencies, provide improved trade connectivity and ultimately enhance value for all stakeholders.”
Nick O’Donohoe, Chief Executive Officer, CDC, added that: “Stable and flourishing economies are built on reliable access to global and intra-continental trade. Africa’s full potential is limited by inadequate ports and trade bottlenecks, putting the brakes on economic growth in some of the world’s fastest-growing economies and undermining social resilience in the least developed parts of the world. This platform will help entrepreneurs and businesses accelerate growth with access to reliable trade routes, and it will help African consumers benefit from the improved reliability and reduced cost of vital goods and food staples.”