AD Ports Group Signs Collaboration Agreement with Africa Finance Corporation
AD Ports Group (ADX: ADPORTS), the leading global facilitator of trade, logistics, and industry, has signed a collaboration agreement with the Africa Finance Corporation (“AFC”), the leading infrastructure solutions provider in Africa, to address infrastructure gaps across the continent.
The agreement provides the basis for the two organisations to join forces on identifying, financing, developing and investing in much-needed ports, warehouses, maritime and logistics infrastructure projects across Africa. Both parties will bring their technical expertise and strong financial capacity and networks to a range of development initiatives, focusing on brownfield and greenfield opportunities.
AFC is a pan-African multilateral development finance institution that bridges the infrastructure investment gap through the provision of financing solutions that cover the entire project cycle as well as technical and advisory services. Over the last 15 years, AFC has invested more than US$ 10 billion in infrastructure projects across 37 countries in Africa. AFC developed and financed the first carbon neutral industrial zone in Africa, the Nkok Special Economic Zone, which has made Gabon the largest exporter of veneer wood globally, generating US$1 billion in annual export revenue and creating over 30,000 jobs. The approach is being replicated by the Arise platform in Benin and Togo. Most recently, AFC, in a joint venture with UAE’s Masdar and EBRD, jointly acquired Lekela Power, the continent’s biggest renewables independent power producer, with plans to double generation capacity within four years.
AD Ports Group has significant expertise in the construction and operation of ports, free zones, logistics and maritime hubs, and is currently active in a range of development projects in territories as diverse as Jordan, Egypt and Iraq.
The collaboration agreement could provide vital support for ports and maritime facilities in Africa, which are often overstretched by growing demand for imported goods and export-driven industrial production facilities that require significant investment to modernise and increase capacity and enhance productivity. According to a report from the African Union (AU), throughput at African ports will reach 2 billion tonnes by 2040, a major challenge when the current average dwell time – the time cargo spends at port – is around 20 days across the continent, compared to the global average of four days.
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.”
Abu Dhabi Ports Company
Abu Dhabi Ports Company (ADPC) is a master developer and regulator of ports and industrial zones. The objective of ADPC is to act as an enabler for development and trade and facilitate its contribution to the diversification of the national economy. In doing so, it will provide its customers and stakeholders with the highest levels of service in a responsive and transparent manner.
ADPC was established in March 2006 by Emiri Decree No. 6 of 2006 in the Emirate of Abu Dhabi as part of the restructuring of the commercial ports sector in the Emirate and was given control and regulatory enforcement power over all commercial ports assets previously owned by the Abu Dhabi Seaports Authority (ADSA).