The UK’s development finance institution and impact investor CDC Group (CDC) is partnering with DP World of the UAE to invest into Africa’s trade and logistics infrastructure.
The long-term partnership will see DP World investing a further $1bn into existing ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland).
On its side, CDC is initially committing approximately $320 million and expects to invest a further $400 million over the next several years.
The additional investment into Berbera aims to turn the port into a regional trading hub boosting economic growth in Somaliland and supporting the growth of Ethiopia by offering an alternative export and import route for the country.
In West Africa, the expansion of the Dakar port will be adding capacity as other ports are increasingly being stretched and unable to serve the hinterland. “The port expansion will support trade with landlocked Mali and help Senegal become a hub of economic activity for the region,” CDC explained.
The partnership is expected to create 138,000 jobs by investing in origin and destination ports, inland container depots, economic zones and broader logistics infrastructure.