(Ecofin Agency) - Emirati group DP World and the British CDC Group announced today a joint investment of $1.72 billion to upgrade port infrastructures in Africa.
The resources will be used to modernize the ports operated by DP World in Ain Sokhna in Egypt, Dakar in Senegal, and Berbera in the Somali separatist region of Somaliland. $1billion will be committed by the Dubai-based company and the remaining will come from CDC.
The partners also want to invest in container depots and business parks. "The expansion of the three ports would improve access to vital goods for 35 million people, including in neighboring countries, support 5 million jobs and add $51 billion to total trade by 2035,” said Tenbite Ermias, head of Africa at CDC Group.
This project aligns with the trend observed across the continent in recent years, with big companies deploying projects with high potential. In 2018, the UK announced its intention to become the leading investor of the G7 countries in Africa, by 2022. Talks are ongoing with African countries to achieve this post-Brexit ambition.
A report by the United Nations Conference on Trade and Development estimated that Africa had the highest rate of return on foreign direct investment between 2006 and 2011 (14%). Despite the Covid-19 pandemic, which came with a drastic decline in economic activity, the continent has several of the fastest-growing countries in the world. Growth is driven by sectors such as banking, telecommunications, and infrastructure.
Last week, CDC Group announced a $100 million investment to provide "much-needed growth capital to medium and large companies, providing essential goods and services to the emerging middle class and mass market.
Dorcas Loba (intern)