DP World partners with CDC Group to create Africa investment platform
DP World is committed to Africa for the long-term and sees significant opportunity for future growth across the continent.
New platform to invest in ports and logistics across Africa
Initially includes investment in DP World assets of Senegal, Egypt and Somaliland
DP World has announced the creation of an investment platform in partnership with the UK's development finance institution and impact investor CDC Group (CDC).
The platform covers a long-term investment period. DP World is contributing its stakes in three existing ports initially and expects to invest a further $1 billion through the platform over the next several years. CDC is committing approximately $320 million initially and expects to invest up to a further $400 million over the next several years. The transaction is subject to certain final regulatory approvals.
The platform 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 (Senegal), Sokhna (Egypt) and Berbera (Somaliland). Trade enabled through the ongoing expansions is expected to create an additional 138,000 employment opportunities in the wider economy. By 2035, the ports are expected to support stable employment for around 5 million people indirectly.
DP World has more than 20 years of experience developing and operating ports and infrastructure and providing logistics solutions in Africa and globally. This transaction is aligned with DP World's strategy of partnering with organisations that offer complementary expertise and have a shared vision for enabling trade and driving economic and social development.
CDC is the UK's development finance institution and impact investor with over 70 years of experience successfully supporting the sustainable, long-term growth of business in Africa and South Asia. CDC is owned by the UK Government and has a dual objective to deliver development impact by supporting business growth that lifts people out of poverty and makes a financial return.
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.
"In CDC, we have found a partner with whom we share the common goal to invest in the long term and help build responsible and sustainable infrastructure in Africa, which is key to unlocking the trade potential of the continent.
"DP World is committed to Africa for the long-term and sees significant opportunity for future growth across the continent. The partnership with CDC offers the flexibility to accelerate and capitalise on these opportunities.
"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."
Nick O'Donohoe, Chief Executive Officer, CDC, added: "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.
"We are proud to support DP World to do even more in Africa, charting a stronger course for African trade around the world."
We are the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.
We deliver these services through an interconnected global network of 129 business units in 55 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work.
Our dedicated, diverse and professional team of more than 55,000 employees from 134 countries are committed to delivering unrivalled value to our customers and partners. We do this by focussing on mutually beneficial relationships – with governments, shippers, traders, and other stakeholders along the global supply chain – relationships built on a foundation of mutual trust and enduring partnership.
We think ahead, anticipate change and deploy industry-leading technology to further broaden our digital vision to disrupt world trade and create the smartest, most efficient and innovative solutions, while ensuring a positive and sustainable impact on economies, societies and our planet.