Dubai ports giant DP World and Britain’s development finance agency CDC Group have jointly announced on Tuesday a planned investment that will see both companies commit $1.7Bn to invest in Africa.
According to Reuters, the two companies plan to jointly invest in logistics infrastructure in Africa over the next several years, starting with modernising three ports.
The investments will initially 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, CDC said.
State-owned DP Word has committed to investing $1 billion over the next several years, while CDC has committed $320 million and potentially investing another $400 million.
The joint investments will then expand to other regions on the continent.
“We have an aligned vision with DP World in that we wanted to do this across the continent in as many ports as possible,” CDC’s Head of Africa Tenbite Ermias told Reuters.
He also said that CDC will own minority stakes in the three ports, with DP World handing over some shares in each.
The expansion of the three ports would improve access to vital goods for 35 million people, including in neighbouring countries, support 5 million jobs and add $51 billion to total trade by 2035, CDC said.
The partnership between DP World and CDC is among a growing list of international and multilateral groups investing in the continent. Last week, Google announced that it would invest $1bn on the black continent. In July, the China-backed Asian Infrastructure Investment Bank (AIIB) approved its first project in sub-Saharan Africa, announcing a $100 million loan to Rwanda.