In order to address infrastructural deficiencies around the continent, the AD Ports Group, a global trade, logistics, and industry facilitator, has signed a collaboration agreement with the Africa Finance Corporation, or AFC.
The agreement lays the groundwork for the two organizations to work together to find, finance, develop, and invest in critical ports, warehouses, maritime, and logistics infrastructure projects across Africa. With an emphasis on brownfield and greenfield prospects, both parties will contribute their technical know-how, robust financial resources, and networks to a variety of development efforts.
AFC is a pan-African multilateral development finance agency that closes the infrastructure investment gap by offering technical and advisory services as well as funding options that cover the whole project cycle. AFC has contributed more than US$ 10 billion to infrastructure projects in 37 African nations during the past 15 years. The Nkok Special Economic Zone, which AFC built and financed, is the first carbon-neutral industrial zone in Africa. It has become Gabon the leading producer of veneer wood globally, producing US$1 billion in export revenue and supporting over 30,000 employment. The Arise platform is using the same strategy in Benin and Togo. Most recently, AFC bought Lekela Power, the continent’s largest independent generator of renewable energy, in a joint venture with the UAE’s Masdar and the EBRD, with ambitions to treble generation capacity within four years.
With extensive experience in the development and management of ports, free zones, logistics hubs, and maritime hubs, AD Ports Group is now engaged in a number of development projects in places as diverse as Jordan, Egypt, and Iraq.
The collaboration agreement may offer crucial assistance to ports and maritime facilities in Africa, which are frequently overburdened by rising import demand and industrial production facilities driven by exports and in need of significant investment to be modernized, expanded in capacity, and made more productive. According to a report from the African Union (AU), by 2040, throughput at African ports will reach 2 billion tonnes, which will present a significant challenge given that the average dwell time, or the amount of time cargo spends in port, is currently 20 days on the continent on average, compared to four days globally.
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Some of the world’s fastest-growing economies are in Africa, necessitating the creation a new generation of ports and maritime facilities, supported by smart technology and enhanced freight infrastructure. 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.”
Samaila Zubairu, President & Chief Executive Officer of AFC, 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.”
