Emirati multinational logistics company, DP World and the UK government’s CDC Group have joined forces to expand African ports, with plans to invest around $1.72 billion in the next several years.
As per reports, the companies will be initially investing in ports of Sokhna (Egypt), Berbera (Somaliland) and Dakar (Senegal) before moving to the ports and inland logistics across Africa.
The two firm say that this initiative will help them unlock Africa’s exchange capability. The country's population is ranked at sixth position in the world, but still, it accounts only for 4% of global containerized shipping volumes owing to the inadequate port capacity.
The parties further stated that the first three expansions would revolutionize the country’s economy.
According to credible sources, DP World is estimated to contribute its current stakes in the first three ports and is expected to invest $1 billion. While CDC promises some $320 million in the beginning and up to $400 million more in the forthcoming years.
The reserve of nearly $1 billion for expanding the Port of Dakar is the largest ever onshore FDI (foreign direct investment) of Senegal. The expanded port is estimated to be simplifying trade equivalent to 18% of Senegal’s GDP and 36% of its countrywide trade by 2035.
The Berbera new port is anticipated to qualify trade equal to 27% of Somaliland’s GDP by 2035 and 75% of its total trade, offering a naval doorway for neighboring Ethiopia.
Additionally, the investment in the Sokhna Port will augment the trade of Egypt with the Middle East and Asia, empowering trade correspondents to 17% of Egypt’s GDP and 19% of its national trade by 2035.
Apart from this, around 5 million jobs will be reinforced by developing these ports, the parties said.