Dubai-Based Ports and Logistics Giant DP World Plans US$3bn Investments into Africa by 2029

DP World is set to invest $3 billion in new port and logistics infrastructure across Africa over the next three to five years to support long-term growth and meet the rising demand for critical mineral exports, Bloomberg is reporting.

Speaking to Bloomberg Television, Mohammed Akoojee, DP World’s CEO and managing director for sub-Saharan Africa said that US$2 billion of the planned investment will be dedicated to ports, while US$1 billion will focus on logistics.

Why the focus on Africa

“The cost of logistics and supply chain across Africa is very high relative to other global markets,” Akoojee explained. This presents a significant opportunity for the port operator, which is currently expanding in Dar es Salaam, Tanzania, and has recently evaluated harbors in South Africa and Kenya for potential investments.

According to analysis by Carnegie’s Africa Program, among the top 20 economies projected to experience the fastest growth rates in 2024, nine are African countries – Niger, Senegal, Libya, Rwanda, Côte d’Ivoire, Djibouti, Ethiopia, The Gambia, and Benin.

Such growth prospects are what’s attracting companies like DP World despite the multiple challenges of doing business across the continent, including accelerating inflation, depreciating currencies, and high borrowing costs.

The UAE ranks among the top ten countries in foreign direct investment in Senegal, with significant investments from Emirati giants such as DP World and Emirates airline. – Emirates News Agency (WAM)

Source: DP World Presentation, 2021

Africa’s potential should be viewed in the long term, rather than through the lens of short-term economic fluctuations, Akoojee emphasized. “It’s a cycle and it certainly hasn’t impacted our appetite for growth on the continent,” he said. “We’re still investing.”

The demand for critical minerals, such as copper from Zambia and the Democratic Republic of Congo, is driving the need for greater logistics capacity. “We’ve seen demand increasing over the last few years, largely driven by the global electrification drive and the demand for commodities like cobalt and lithium,” Akoojee noted.

DP World’s Africa unit employs 27,000 workers and spans ports, terminals, logistics, and supply chain businesses. The company recently lost a bid to partner with South Africa’s Transnet SOC Ltd. to develop the continent’s largest container port owned by Filipino billionaire Enrique Razon, losing to International Container Terminal Services Inc. However, the company remains undeterred. With South Africa moving forward with the partial privatization of Transnet, “we remain interested in those opportunities,” Akoojee told Bloomberg. Additionally, DP World is considering investments in the port of Lamu in Kenya, where a privatization process is also underway.

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