DP World has joined forces with UK-based development finance institution CDC Group to establish a new platform to invest in ports and logistics across Africa.
DP World is initially contributing its stakes in three existing ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland), and expects to invest a further $1 billion through the platform over the next few years.
On top of this, CDC is committing approximately $320 million initially and expects to invest up to a further $400 million over the next few years.
The platform will invest in origin and destination ports, inland container depots, economic zones, and other logistics across Africa to increase trade, create new job opportunities and broaden access to essential goods.
“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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World. “The partnership will create transformational opportunities for tens of millions of people over the next decade.
“In CDC, we have found a partner with whom we can share the common goal to invest in the long term and help build responsible and sustainable infrastructure in Africa, which is key to unlocking trade potential of the continent.
“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 of CDC, added “Africa’s full potential is limited by inadequate ports and trade bottlenecks, putting the brakes in 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.
“We are proud to support DP World to do even more in Africa, charting a stronger course for African trade around the world.”
DP World’s Stuttgart branch has also announced it will invest €35 million ($40 million) over the next three to five years to strengthen the capacity of its operations within the firm’s wider inland network.
