DP World, UK firm to invest Dh6.3 billion in Africa

Dubai - Joint investments will increase 138,000 jobs in Africa



Initially, the joint investments will be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). — Supplied photo
Initially, the joint investments will be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). — Supplied photo

By Waheed Abbas

Published: Tue 12 Oct 2021, 4:08 PM

Global ports operator DP World has tied up with UK’s development finance institution CDC Group to invest $1.72 billion (Dh6.31 billion) in the logistics sector across Africa in the coming years.

As part of a long-term strategy, DP World will invest an additional $1 billion in three existing ports initially over the next several years. While CDC will invest approximately $320 million initially and another $400 million over the next several years.

Initially, the joint investments will be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland).

It’s estimated that trade enabled through the ongoing expansions will create an additional 138,000 employment opportunities in the region. By 2035, the ports are expected to support stable employment for around five million people indirectly.

Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said the partnership 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… DP World is committed to Africa for the long term and sees significant opportunities for future growth across the continent. The partnership with CDC offers the flexibility to accelerate and capitalise on these opportunities,” said bin Sulayem.

“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,” he added.

Nick O’Donohoe, chief executive officer of CDC, noted 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.

“We are proud to support DP World to do even more in Africa, charting a stronger course for African trade around the world,” he added.

Achieving zero emission

On Tuesday, DP World signed a five-year agreement with Man Energy Solutions that targets common progress in the field of decarbonisation.

Wayne Jones, chief sales officer, and Gaby Hanna, senior vice-president and head of the Middle East and Africa, and Sultan Ahmed bin Sulayem signed the agreement.

Mutual areas of interest for the two companies include green-fuels infrastructure, future-proof conversions (LNG, methanol, ammonia, etc.), hybrid drives, electric engines R&D and training, and investigation of their respective, global footprints to further reduce the environmental impact of shipping traffic in terms of fuel consumption and emissions.

“To achieve net-zero emissions, we must recognise the importance of taking urgent and immediate steps to decarbonise shipping and the way to do that is by identifying opportunities to forge partnerships with leading industry players and governments to develop solutions that will allow us to reap tangible results,” added bin Sulayem.

— waheedabbas@khaleejtimes.com


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