UAE - Mubasher: DP World has entered into a long-term partnership with CDC Group (CDC), the UK-based development finance institution, to invest in ports and logistics across Africa.
Under the partnership, the Dubai-based global port operator will contribute its stake initially in the ports of Dakar in Senegal, Sokhna in Egypt, and Berbera in Somaliland, according to a press release on Tuesday.
DP World is also expected to invest a further $1 billion through the partnership over the next several years.
Through the transaction which is subject to certain final regulatory approvals, CDC will invest around $320 million initially and up to a further $400 million over the next several years.
Both groups aim to support the modernisation and expansion of ports and inland logistics across Africa, increase trade, create new job opportunities, and raise access to essential goods.
By 2035, the ports are expected to record around $51 billion in additional trade, representing 3% of Senegal’s GDP, 3% of Egypt’s GDP, and 6% of Somaliland’s GDP.
The Group Chairman and CEO of DP World, Sultan Ahmed bin Sulayem, said: "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."
Meanwhile, the CEO of CDC, Nick O'Donohoe, commented: "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."
