THE UAE’s AD Ports Group and DP World are leading a significant push to transform Africa’s port infrastructure, demonstrating an insatiable appetite for expansion on the continent. Together, these global port operators are reshaping African maritime logistics with ambitious investments and development projects.
Driving port modernisation
AD Ports Group recently signed a memorandum of understanding with Somalia’s Ministry of Fisheries to explore port and fisheries upgrades. Over the past 18 months, the group has also secured major concessions to develop port facilities in Egypt, Angola, Tanzania, and the Republic of Congo.
Meanwhile, DP World operates or is developing over 15 African port assets, including key facilities in Algeria, Somaliland, Mozambique, Senegal, and South Africa. The company has committed nearly $3bn over the next five years, with projects like Senegal’s Port of Ndayane—the largest private investment in the country’s history—and the Democratic Republic of Congo’s (DRC) first deepwater container facility at Banana.
Africa’s challenges and opportunities
Africa accounts for only 4 percent of global containerised shipping volumes despite being home to 17 percent of the world’s population. The continent faces chronic infrastructure deficits, with port inefficiencies and high logistics costs hindering trade. A World Bank study found African ports’ average digital maturity score lagging behind global standards, and less than a third of ports have implemented centralised digital systems for streamlined cargo management.
The African Continental Free Trade Area (AfCFTA), launched in 2021, is expected to boost intra-African trade by 40 percent by 2045, increasing demand for efficient transport services. With vast mineral resources and growing trade prospects, Africa’s potential remains untapped.
Balancing investment and sovereignty
While UAE operators bring vital investment and expertise, their activities have occasionally sparked controversy. DP World, for instance, faced backlash in Tanzania over perceived threats to sovereignty from port concession agreements. In Sudan, national security concerns led to the cancellation of an agreement with AD Ports Group to develop the Abu Amama port.
Privatisation of maritime infrastructure in Africa often triggers debate, particularly in nations with corruption histories. Sultan Ahmed bin Sulayem, CEO of DP World, acknowledged the challenges of working in Africa, citing infrastructure inefficiencies and political instability. Nevertheless, DP World’s success stories, such as the extended concession for Mozambique’s Port of Maputo, demonstrate the value of partnerships in improving efficiency and fostering growth.
The road ahead
Africa’s ports require billions in investment to develop integrated transport networks and special economic zones that can drive industrialisation and lift millions out of poverty. The willingness of UAE operators to engage in long-term projects positions them as key allies in Africa’s economic transformation.
As the continent navigates its journey towards modernisation, partnerships like those with DP World and AD Ports Group will be instrumental in creating a maritime infrastructure capable of unlocking Africa’s vast potential.
