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). DP World has over 20 years of experience developing and operating ports and infrastructure and providing logistics solutions in Africa and globally. Owned by the UK Government, the CDC is the UK’s development finance institution and impact investor with over 70 years of experience supporting the sustainable, long-term growth of business in Africa and South Asia. It has a dual objective to deliver development impact by supporting business growth that lifts people out of poverty and makes a financial return.
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 $1bn through the platform over the next several years. CDC is committing approximately $320m initially and expects to invest up to a further $400m 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 with the aim 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 5m people indirectly.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, commented: “We see significant opportunity for future growth across the African. By combining our 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 y enhance value for all stakeholders. The partnership will create transformational opportunities for tens of millions of people over the next decade.”
Nick O’Donohoe, Chief Executive Officer, CDC, added: “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.”
Source: DP World
