The UAE's multinational logistics company, DP World, and the UK's development finance agency, CDC Group, announced this week a joint investment of up to $1.72 billion in logistics infrastructure in Africa.

A joint note states that initially the project will prioritize the modernization and expansion of three ports operated by DP World. One port in Ain Sokhna, Egypt, another in Dakar, Senegal and Berbera in Somalia's northern region, Somaliland. Only after the first one is completed will other regions of the contintente be covered.

Quoted in the statement, DP World Group's CEO, Sultan Ahmed bin Sulayem, maintained the expectation of success that can be achieved with the partnership.

"By combining our knowledge of ports and logistics and CDC's experience in infrastructure investment in Africa, we can: (i) increase supply chain efficiency; (ii) improve trade connectivity; and ultimately increase value for all stakeholders," it reads.

The companies expect to indirectly benefit about five million people by 2035.

According to CDC's Africa Manager, Tenbite Ermias, the partnership plans to invest, along with the ports, in infrastructure such as container depots and business parks. However, CDC will have minority stakes in all three ports with DP World ceding shares in all of them.