The partnership which has taken four years to come to fruition will see DP World contributing its stakes in three existing African port projects in Dakar, Senegal; Sokhna, Egypt; and Berbera in Somaliland. It expects to invest a further $1bn through the platform in the “next several years”.
CDC Group is committing $320m to the platform with a further $400m expected in the following years.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “DP World views Africa as a long-term growth market and the opportunity landscape remains significant.
“This partnership with CDC offers us greater flexibility to accelerate and capitalise on these opportunities, and will enable us to increase our investment in ports and logistics infrastructure across Africa.”
While Africa is home to a sixth of the world’s population it accounts for just 4% of container volumes presenting major opportunities for investment.
Nick O’Donohoe, Chief Executive Officer, CDC Group, said: “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.”
Copyright © 2021. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.