The Red Sea state of Eritrea may play a key role in DP World Ltd.’s plans in the Horn of Africa, where a dozen ports could be needed to service the region, Chief Executive Officer Sultan Ahmed bin Sulayem said.
The Dubai-based state-controlled harbor operator is evaluating its strategy in the region after having its stake in a port in Djibouti — the main trade route for Ethiopia, Africa’s fastest-growing economy — nationalized by the government. Developing more ports in the Horn, including one it’s already building at Berbera in the self-declared republic of Somaliland, will help boost trade flows to Dubai, Bin Sulayem said in an interview.
Eritrea’s strategic location near the Bab el-Mandeb Strait, a key shipping lane used by oil tankers and other cargo vessels en route to the Suez Canal, makes it an attractive investment destination for logistics companies. It’s also a gateway to other nations in the region, the CEO said.
“Eritrea is going to have a major role,” Bin Sulayem said. “We believe that the way we should look at the Horn of Africa is not at Eritrea alone, but add to the equation South Sudan, other parts of Sudan, and Eritrea’s needs, and then the Ethiopian population.”
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