DP World-CDC Group to create Africa investment platform

DP World has announced the creation of an investment platform in partnership with CDC Group (CDC), the UK's development finance institution and impact investor. 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 US$1 billion through the platform over the next several years.

DP World-CDC Group to create Africa investment platform

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 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.

Commenting on the new partnership, 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." He underlined DP World's commitment to Africa for the long-term, saying that his company sees significant opportunity for future growth across the continent. "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 concluded.