Addleshaw Goddard (AG) has advised DP World on the creation of a dedicated investment platform to build out vital ports and logistics in Africa, helping to create up to 138,000 jobs.
The platform, which was created in partnership with CDC Group, will invest in origin and destination ports, inland container depots, economic zones and other logistics across Africa.
The investment platform will be seeded initially with three of DP World's assets in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland).
Over the next several years, DP World plans to invest a further US$1bn through the platform and CDC Group up to a further US$400m.
By 2035, the ports invested in through the platform are expected to support stable employment for around 5 million people indirectly.
AG advised DP World on all elements of the transaction. The cross-border team was led by AG partners Ian Le Pelley, Angus Rollo and Paul Jones.
AG's international ports practice has experience advising sponsors, operators and investors on acquisitions, concessions, PPPs, tenders, privatisations, joint ventures, strategic partnerships and foreign direct investment across EMEA countries. The firm has one of the most established multi-disciplinary Infrastructure Projects and Energy teams of any legal firm, working across sectors including water, waste, large-scale outsourcing, renewable energy, transport, construction and healthcare.
Ian Le Pelley, Infrastructure Projects & Energy Partner at Addleshaw Goddard, said:
"Ports and logistics are an essential way of unlocking trade, production and job opportunities across any country, so it's fantastic to have worked on a deal which will facilitate this across multiple jurisdictions.
"It was a pleasure to work with the exceptional DP World team on this deal. The company is one of the world's leading developers and operators of supply chain infrastructure and is truly committed to driving value through all of its investments."
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said:
"We are excited to announce a partnership with CDC Group that will enable increased investment in ports and logistics infrastructure across Africa, driving efficiency and trade growth. The partnership will create transformational opportunities for tens of millions of people over the next decade.
"In CDC, we have found a partner with whom we share the common goal to invest in the long term and help build responsible and sustainable infrastructure in Africa, which is key to unlocking the trade potential of the continent.
"DP World is committed to Africa for the long-term and sees significant opportunity for future growth across the continent. The partnership with CDC offers the flexibility to accelerate and capitalise on these opportunities.
"By combining our in-depth knowledge of ports and logistics and CDC's expertise in infrastructure investment in Africa, we can drive greater supply chain efficiencies, provide improved trade connectivity and ultimately enhance value for all stakeholders."
Nick O'Donohoe, Chief Executive Officer, CDC, added:
"Stable and flourishing economies are built on reliable access to global and intra-continental trade. Africa's full potential is limited by inadequate ports and trade bottlenecks, putting the brakes on economic growth in some of the world's fastest-growing economies and undermining social resilience in the least developed parts of the world. This platform will help entrepreneurs and businesses accelerate growth with access to reliable trade routes, and it will help African consumers benefit from the improved reliability and reduced cost of vital goods and food staples.
"We are proud to support DP World to do even more in Africa, charting a stronger course for African trade around the world."