Dubai's DP World sets up Africa investment platform, will pump $1b into new ports on Continent
Dubai company ropes in UK's specialist finance house CDC Group in Africa mission
Dubai: Dubai Government owned DP World has launched an Africa focussed investment platform in alliance with the UK’s CDC Group, which specialises in development finance.
Under the long-term investment plan, DP World is contributing its stakes in three existing ports initially and expects to channel a further $1 billion through the platform. CDC is committing about $320 million initially and expects to invest up to a further $400 million. 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.
CDC as partner
CDC is the UK-based development finance institution and 'impact investor' with over 70 years of supporting the sustainable, long-term growth of business in Africa and South Asia. It 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.
Jobs and more jobs
By 2035, the ports are expected to support stable employment for around 5 million people indirectly. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said in a statement: "The partnership will create transformational opportunities for tens of millions of people over the next decade. In CDC, we 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."