CDC Group Puts Cash in DP World Platform Targeting African Ports
Posted on 10/12/2021
DP World, which is owned by Dubai World, revealed the creation of an investment platform in partnership with the U.K.’s development finance institution and impact investor CDC Group (CDC). 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. CDC is committing approximately US$ 320 million initially and expects to invest up to a further US$ 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.
In May 2016, DP World signed a US$ 442 million agreement with the government of Somaliland to operate a regional trade and logistics hub at the Port of Berbera. On March 1, 2018, Ethiopia became a major shareholder following an agreement with DP World and the Somaliland Port Authority. DP World holds a 51% stake in the port, Somaliland 30%, and Ethiopia the remaining 19%.
DP World Sokhna is a transit port for other Egyptian ports as well as into African subcontinent. The port was built at a cost of US$ 520 million. DP World Sokhna has a capacity of approximately One Million TEUs annually with an upcoming capacity of 750,000 TEU with the opening of Basin 2 in June 2020.