CDC partners DP World for $1.7bn Africa logistics investment platform

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.  

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Meridiam signs $250m Concession Agreement for Burkina Faso’s Donsin-Ouagadougou Airport

Earlier today, Meridiam signed a 30-year concession agreement with the State of Burkina Faso for the conception, construction, financing, operation and maintenance of a new international airport 35km northeast of Burkina Faso’s capital Ouagadougou. The project is now progressing towards financing close. The engineering and construction works are expected to start at the end of 2022 and last for about 30 months. Meridiam has partnered with Aéroport Marseille-Provence (AMP) as a technical partner under a technical assistance contract. AMP will also be a minority shareholder in the special purpose vehicle set up for the project. The project is expected to cost about €220m (over $250m) and represents one of Bukina Faso’s biggest public-private partnership (PPP) initiatives. Once completed, the new Donsin international airport will replace the current Ouagadougou-Taamsê International Airport built in the 1960s and located in the centre of Ouagadougou.

World’s second-largest mining company enters Angolan diamond mine

Last week in Lison, Angola’s Ministry of Mineral Resources, Petroleum & Gas and Angola’s national diamond company Endiama signed a mining investment contract with Rio Tinto for the Chiri diamond concession in the Lunda Norte Province in northern Angola, at the border with the Democratic Republic of Congo (DRC). The negotiations had been ongoing since late 2018 for the 108km2 concession. The contract covers a period of 35 years and provides for an initial participation of 75% by Rio Tinto in a new joint-venture with Endiama (25%) on the licence. The Angolan company could eventually increase its stake to 49%. Rio Tinto has declared that works would start immediately at the mine, with first production expected in 2024. Source: BNA Angola is the world’s sixth largest diamond producer and diamonds represent the country’s second biggest source of export earnings after oil and liquefied natural gas (LNG). The country has been increasing efforts to revive the sector and attract investments in a bid to diversify the economy, support industrialization and grow foreign exchange revenue sources.