Dubai’s logistics group DP World and UK impact investor CDC Group have partnered to invest in ports and logistics across Africa.
DP World is contributing its stakes in three existing ports initially and expects to invest a further US$1bn through the platform over the next several years, while CDC is committing US$320mln initially and expects to invest up to a further US$400mln in the future.
The pair will invest in origin and destination ports, inland container depots, economic zones and other logistics across Africa to increase 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 significant capacity expansion plans, including Dakar in Senegal, Sokhna in Egypt and Berbera in Somaliland.
DP World and CDC reckon this project will generate 138,000 jobs and support 5mln people indirectly by 2035.
"Stable and flourishing economies are built on reliable access to global and intra-continental trade,” commented CDC chief executive Nick O'Donohoe.
“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.”