Abu Dhabi’s AD Ports Group, owned by sovereign wealth fund ADQ, has signed a deal with development financier Africa Finance Corporation for potential projects across Africa.
The “collaboration” agreement “provides the basis” for the two entities to identify, finance, develop and invest in ports, warehouses, maritime and logistics infrastructure projects in the continent, according to a statement on Wednesday.
The deal could provide “vital support” for ports and maritime facilities in Africa, many of which require significant investments to meet rising demand for imported goods.
Throughput at African ports are forecast to reach 2 billion tonnes by 2040, according to a report from the African Union. However, across the continent, the current “dwell time” or amount of time cargo spends at a port is around 20 days, compared to the global average of four days.
“We see a key opportunity to support African nations in their efforts to develop advanced trade hubs that can manage the rising volume of maritime commerce,” said Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
“Working with AFC, we will look to prioritie projects that can make a lasting impact on the economies and communities of their respective nations.”
AFC has funded infrastructure projects worth $10 billion across 37 countries in Africa over the last 15 years.
(Writing by Cleofe Maceda; editing by Seban Scaria)