The agreement provides the basis for the AD ports group and AFC to come together to identify, develop, and finance the essentially required maritime, warehouses, and logistics infrastructural projects in Africa
AD ports group, Abu Dhabi’s leading global facilitator of trade, industry, and logistics signs a partnership agreement with Africa Finance Corporation (AFC), which is the prominent infrastructure solutions provider in Africa for potential projects and ways to bridge the infrastructural gap across continents. The agreement provides the basis for AD ports group and AFC to come together to identify, develop, and finance the essentially required maritime, warehouses, and logistics infrastructural projects in Africa.
The financial capacity and technical capability of both firms will boost and introduce a range of development initiatives that focus on greenfield and brownfield opportunities. Africa Finance Corporation is a multilateral development finance institution in Africa that reduces the investment gap in infrastructural facilities by providing financial solutions covering the whole project cycle which includes advisory as well as technical services. AFC has invested more than USD 9 billion in infrastructure projects across the countries in Africa throughout the past 15 years.
“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,” stated Samaila Zubairu, President & Chief Executive Officer of AFC.
The CEO of AFC further added that the combination of AFC’s outstanding investment track record and specialist expertise with AD Ports Group’s technical proficiency will generate the development of some of the most advanced logistics platforms and integrated ports in the world and in Africa. The official also added that they look forward to a continued partnership as the companies work together to release Africa’s economic potential and focus on transforming lives on the continent.
The Nkok Special Economic Zone was AFC’s creation, and it is the first carbon-neutral industrial zone in Africa. The Nkok Special Economic Zone made Gabon the largest exporter of Veneer wood across the world, resulting in receiving annual export revenue earnings worth $1 billion in addition to the creation of thousands of job openings. This project model is used by other platforms owing to its success.
The approach is being imitated by the Arise platform in Togo and Benin. AD ports also have experience in the operations and manufacturing of ports, logistics hubs, maritime hubs, and free zones.
Managing Director and Group CEO, AD Ports Group, Capt. Mohamed Juma Al Shamisi stated that Africa is one of the world’s fastest-growing economies that requires the creation of the next generation maritime and port facilities that are facilitated by advanced technology and developed freight infrastructure.
He also added that working with AFC will help in prioritizing important projects that will enable a lasting impression on the communities and economies of respective nations, falling in line with the direction of the leadership to support advanced development. “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,” says Capt. Mohamed Juma Al Shamisi.
The company is currently in the process of developing a wide range of projects in territories such as Iraq, Egypt, and Jordan. African Finance Corporation signed a joint venture deal with EBRD and Masdar, where they acquired Lekela Power, the continent’s greatest renewable independent power producer. With the acquisition of Lekela Power, the firm plans to double the generation capacity within four years.
The alliance agreement could provide vivacious support for maritime facilities and ports in Africa, which are often overstrained by growing demand for export-driven industrial production facilities and imported goods that require significant investment to renovate and increase capacity and augment the output levels. African Union reports state that the output of African ports will reach around 2 billion tonnes by the year 2040. This poses a major challenge as the current average dwell time the cargo spends at the port is nearly 20 days throughout the continent when compared to the average of four days in other parts of the world.