Dubai's DP World ties up with CDC Group to create Africa investment platform
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Dubai’s DP World ties up with CDC Group to create Africa investment platform

Dubai’s DP World ties up with CDC Group to create Africa investment platform

The platform will invest in origin and destination ports, inland container depots, economic zones and other logistics across Africa

Dubai’s DP World has announced the creation of an investment platform in partnership with the UK’s development finance institution and investor CDC Group.

The platform will invest in origin and destination ports, inland container depots, economic zones and other logistics across Africa to spur trade, create new job opportunities and broaden access to essential goods.

It will initially be seeded with minority stakes in existing DP World assets with capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland).

Trade enabled through the ongoing expansions is expected to create 138,000 additional employment opportunities. By 2035, the ports are expected to support employment for around 5 million people indirectly.

DP World is contributing its stakes in three existing ports initially and expects to invest a further $1bn through the platform over the next several years. Meanwhile, UK government-owned CDC is committing approximately $320m initially and expects to invest up to a further $400m over the next several years, a statement said.

The transaction is subject to final regulatory approvals.

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.”

“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,” added Nick O’Donohoe, chief executive officer, CDC. “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.”

DP World Limited handled 19.7 million TEU across its global portfolio of container terminals in the Q2 2021, with gross container volumes increasing by 17.6 per cent year-on-year on a reported basis and 17.1 per cent on a like-for-like basis.

Read: Dubai’s DP World reports 17.1% volume growth in Q2 2021

DP World had announced in September that it will begin work on a new fourth berth at its London Gateway logistics hub this month.

Read: Dubai’s DP World to invest £300m in London Gateway logistics hub

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