Dubai ports giants, DP World and Britain’s development financing agency CDC Group announced on Tuesday, plans to invest up to $1.72 billion in Africa’s logistics infrastructure over the next several years, beginning with the modernization of three ports.
The funds will be used to expand DP World’s ports in Egypt’s Ain Sokhna, Senegal’s Dakar, and Berbera in Somalia’s breakaway territory of Somaliland, according to the CDC.
DP Word, a state-owned company, has pledged to invest $1 billion over the next five years, while CDC has pledged $320 million and could invest up to $400 million more.
The collaborative investments will be expanded to additional African regions in the future.
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 told Reuters.
The partnership plans to invest, along with ports, in infrastructure like 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 35 million people, including in neighbouring countries, support 5 million jobs and add $51 billion 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.
In July, the China-backed Asian Infrastructure Investment Bank (AIIB) approved its first project in sub-Saharan Africa, announcing a $100 million loan to Rwanda.
(Reuters)