DP World and CDC Group (CDC) have announced the creation of an investment platform to finance origin and destination ports, inland container depots, economic zones and other logistics across Africa.
The companies are undertaking this partnership in order to increase trade, create new job opportunities and broaden access to essential goods across the continent. The platform will initially be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). Trade enabled through the ongoing expansions is expected to create an additional 138,000 employment opportunities in the wider economy. By 2035, the ports are expected to support stable employment for around five 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$1bn through the platform over the next several years. CDC is committing approximately US$320mn initially and expects to invest up to a further US$400mn over the next several years.
Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, commented, "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, CEO, CDC, added, "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.