$3bn African ports investment on the cards

DP World plans to spend $3bn over the next three to five years on new port and logistics infrastructure in Africa to meet long-term growth that includes surging demand for critical mineral exports. ‘The cost of logistics and supply chain across Africa is very high relative to other global markets,’ which presents a good opportunity,’ said Mohammed Akoojee, DP World’s CEO for sub-Saharan Africa. Moneyweb reports that the port operator is expanding in Dar es Salaam in Tanzania and has recently assessed harbours in SA and Kenya for potential investment. Akoojee said DP World will allocate $2bn of the upcoming investment on ports, specifically, and $1bn on the logistics business. Eight of the world’s 15 fastest-growing economies are expected to be in Africa this year, according to the IMF. This is luring global companies despite economic pain from accelerating inflation, depreciating currencies and high borrowing costs in the region.