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CDC Group partners with DP World

Staff writer
Oct. 12, 2021, 2:48 p.m.
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Word count: 487

CDC Group has partnered with DP World to accelerate Africa’s trade potential through supporting the modernisation and expansion of ports and inland logistics across Africa. 

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CDC Group has partnered with DP World to accelerate Africa’s trade potential through supporting the modernisation and expansion of ports and inland logistics across Africa. 

Nick O’Donohoe, CEO, CDC Group, said: “Stable and flourishing economies are built on reliable access to global and intra-continental trade. 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.” 

“This platform will help entrepreneurs and businesses accelerate growth with access to reliable trade routes and it will help African consumers benefit from the improved reliability and reduced cost of vital goods and food staples.”

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

The platform covers a long-term investment period.

The three initial ports are the ports of Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). 

DP World is contributing its stakes in the three existing ports initially and expects to invest a further $1bn through the platform over the next several years. 

CDC is committing approximately $320m initially and expects to invest up to a further $400m over the next several years. 

The transaction is subject to certain final regulatory approvals.

Many ports and logistics facilities in Africa remain constrained, lacking in capacity to meet the needs of local economies, according to CDC.

Better performing trade infrastructure allows businesses to expand and to create jobs. 

It can improve the quality of life for millions of people by reducing the cost of living for many who currently overpay for vital imported goods. 

Trade enabled by the three initial ports will support 5 million jobs in the wider economy (of which 138,000 are expected to be created by the ongoing port expansions and modernisations), and will improve access to critical goods and staples including food; this will benefit over 35 million people across the three geographies, including further afield to the wider Horn of Africa and parts of the Sahel.

By 2035, an estimated $51bn in additional trade is forecast to pass through the ports, equivalent to 3% of Senegal’s GDP, 3%of Egypt’s GDP and 6% of Somaliland’s GDP.

The ports will also provide a gateway to international markets for countless African businesses and entrepreneurs, as well as supporting the growth of nascent export industries currently stymied by logistics inefficiency.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “DP World views Africa as a long-term growth market and the opportunity landscape remains significant. This partnership with CDC offers us greater flexibility to accelerate and capitalise on these opportunities, and will enable us to increase our investment in ports and logistics infrastructure across Africa. The partnership will create transformational opportunities for millions of people over the next decade.”

 

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