Dubai port giant DP World and the United Kingdom's development finance agency CDC Group announced plans to invest up to USD 1.72 billion in logistics infrastructure in Africa over the next several years, beginning with the modernization of three ports.
According to CDC, the initial investments will focus on expanding ports operated by DP World in Egypt's Ain Sokhna, Senegal's Dakar, and Berbera in Somalia's breakaway region of Somaliland.
State-owned DP Word has committed to investing USD 1 billion over the next several years, while CDC has committed USD 320 million and may invest up to an additional USD 400 million.
The joint investments will eventually be expanded to other African regions, with the hope that they will accelerate inbound and outbound trade for the continent.
They shared a vision with DP World in that they wanted to do as much as possible across the continent in as many ports as possible, according to Tenbite Ermias, CDC's Head of Africa.
The partnership intends to invest in infrastructures such as container depots and business parks in addition to ports.
Ermias stated that CDC will have a minority stake in each of the three ports, with DP World providing some shares in each.
According to the CDC, expanding the three ports would improve access to essential goods for 35 million people, including those in neighboring countries, support 5 million jobs, and add USD51 billion to total trade by 2035.
The collaboration between DP World and CDC, both of which were already active in Africa, is one of a growing number of international and multilateral groups investing in the continent.