DP World will contribute its stakes in three existing ports and invest $1 billion over the next few years through an investment platform to be created in partnership with CDC Group (CDC), the UK’s development finance institution and impact investor.
The platform covers a long-term investment period.
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 said the partnership is aligned with its strategy of partnering with organizations that offer complementary expertise and have a shared vision for enabling trade and driving economic and social development.
On the other hand, CDC has more than 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, “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.”
Nick O’Donohoe, CEO of CDC, said stable and flourishing economies are built on reliable access to global and intra-continental trade.
He added that 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,” he said.
