DP World has partnered with the United Kingdom's development finance institution and impact investor CDC Group (CDC) to develop port infrastructures over the next years in Africa.
The two partners plan to spend US$1.72 billion in total through a jointly created investment platform.
In particular, 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, according to a statement.
The Dubai-based port and terminal operator DP World, which will contribute its stakes in three existing ports initially, expects to invest a further US$1 billion through the platform, while CDC will dispose approximately US$320 million and a further fund of US$400 million is anticipated over the next years.
The platform 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).
Nick O'Donohoe, Chief Executive Officer of CDC, stated that the platform will help entrepreneurs and businesses accelerate growth with access to reliable trade routes, and the African consumers to benefit from the improved reliability and reduced cost of vital goods and food staples," while charting a stronger course for African trade around the world.
Trade enabled through the ongoing expansions is expected to create an additional 138,000 employment opportunities in the wider economy and the ports are expected to support stable employment for around 5 million people indirectly by 2035.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said that the two partners are sharing the common goal to invest in the long term and help build responsible and sustainable infrastructure in Africa.
"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," added the CEO of DP World.
The transaction is still subject to certain final regulatory approvals, according to the announcement.