DP World has announced the creation of a new investment platform in partnership with the UK development finance institution, CDC Group (CDC).
DP World is contributing its shareholdings in three existing ports initially and expects to invest a further US$1 billion through the platform over the next few years. CDC is committing approximately $320 million initially and expects to invest up to a further $400 million over time.
The platform will invest in origin and destination ports, inland container depots, economic zones and other logistics ventures across Africa. It will initially be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including terminals in Dakar, Sokhna and Berbera.
CDC is owned by the UK Government and has the dual objective of delivering development impact by supporting business growth that lifts people out of poverty and makes a financial return.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said: “DP World is committed to Africa for the long-term and sees significant opportunity for future growth across the continent. The partnership with CDC offers the flexibility to accelerate and capitalise on these opportunities. 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.”