DP World and Britain’s CDC pledge up to $1.7bn investment in African ports
Investment will target expanding ports operated by DP World in Egypt, Senegal and Somaliland
Dubai — Dubai ports giant DP World and Britain’s development finance agency CDC Group on Tuesday said they planned to jointly invest up to $1.72bn in logistics infrastructure in Africa over the next several years, starting with modernising three ports.
The investments will initially focus on expanding ports operated by DP World in Egypt’s Ain Sokhna, Senegal’s Dakar and Berbera in Somalia’s breakaway region of Somaliland, CDC said.
State-owned DP Word has committed to investing $1bn over the next several years, while CDC has committed $320m and potentially investing up to a further $400m.
The joint investments will eventually be expanded to other regions in Africa, in what DP World and CDC hope will accelerate inbound and outbound trade for the continent.
"We have an aligned vision with DP World in that we wanted to do this across the continent in as many ports as possible," CDC's head of Africa Tenbite Ermias said.
The partnership plans to invest, along with ports, in infrastructure such as container depots and business parks.
CDC will own minority stakes in the three ports, Ermias said, with DP World handing over some shares in each.
The expansion of the three ports would improve access to vital goods for about 35-million people, including in neighbouring countries, support 5-million jobs and add $51bn to total trade by 2035, CDC said.
The partnership between DP World and CDC, who were both already active across Africa, is among a growing list of international and multilateral groups investing in the continent.
DP World, one of the world’s biggest port operators, has made an almost R13bn buyout offer for Imperial Logistics in SA.
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