AD Ports Group has signed a collaboration agreement with the Africa Finance Corporation (AFC), a pan-African multilateral development finance institution, to address infrastructure gaps across Africa.
Under this agreement, the two entities will team up to identify, finance, develop and invest in ports, warehouses, and maritime and logistics infrastructure projects across the continent.
AD Ports Group and AFC will combine their technical expertise, financial capacity and networks on several development projects, with a focus on brownfield and greenfield opportunities.
AFC bridges the infrastructure investment gap through financing solutions that encompass the complete project cycle as well as providing technical and advisory services.
In the last 15 years, AFC has invested more than $10bn in infrastructure projects across 37 countries in Africa.
Through a joint venture with the United Arab Emirates’ (UAE) Masdar and European Bank for Reconstruction and Development (EBRD), AFC recently bought Lekela Power, a renewable independent power producer, with plans to double the production capacity within a span of four years.
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AD Ports Group has experience in the construction and operation of ports, free zones, and logistics and maritime hubs.
It is presently involved in several development projects in countries that include Jordan, Egypt and Iraq.
The latest collaboration is expected to provide important support for ports and maritime facilities in Africa.
Many ports and maritime facilities in the continent are often overstretched due to increasing demand for imported goods.
According to a report from the African Union (AU), the throughput at the continent’s ports will reach two billion tons by 2040. This would pose a big challenge given that the present average dwell time of cargo at ports is around 20 days, compared to the global average of four days.
AD Ports Group managing director and group CEO Captain Mohamed Juma Al Shamisi said: “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 and deliver excellent connectivity.
“Working with AFC, we will look to prioritise projects that can make a lasting impact on the economies and communities of their respective nations, in line with the direction of our wise leadership to support progressive development.”
AFC president and CEO Samaila Zubairu said: “We are pleased to sign this collaboration agreement with AD Ports Group today, demonstrating the UAE’s ongoing enthusiasm to invest and deploy expertise in Africa.
“Combining AFC’s specialist expertise and outstanding investment track record with AD Ports Group’s technical proficiency, I am confident that our collaboration will yield the development of some of the most advanced integrated ports and logistics platforms in Africa and the world at large. We look forward to a continued partnership as we work together to unleash Africa’s economic potential and transform lives on the continent.”
Last month, AD Ports Group agreed to acquire an 80% interest in Dubai-based container shipping company Global Feeder Shipping for $800m.