• Thursday, October 03, 2024
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Here are the major GCC port concessions transforming Africa’s trade landscape

The Gulf Cooperation Council (GCC) states, particularly the UAE, have been strategically investing in Africa’s port infrastructure.

This effort involves securing key port concessions, developing transport nodes, and partnering with or investing in African transport and logistics companies.

The UAE, through its major players like Dubai-based DP World and Abu Dhabi-based AD Ports Group, has taken the lead in fostering closer ties with the African transport sector, acquiring controlling stakes in numerous African ports in Algeria, Egypt, Sudan, Eritrea, Somaliland, Somalia, Tanzania, Mozambique, South Africa, Angola, the Democratic Republic of Congo, Congo-Brazzaville, Rwanda, Nigeria, Guinea and Senegal.

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The strategic investments by GCC states in Africa’s port infrastructure have several implications. These investments will boost economic growth in the host countries by enhancing trade capacities and creating job opportunities.

According to the Economist Intelligence Unit (EIU), “In October 2023 DP World and the Tanzanian government signed a deal for the Emirati logistics company to manage two-thirds of Dar es Salaam port for the next 30 years.”

The following month, AD Ports signed an agreement with the Egyptian government to develop a multipurpose terminal at Safaga seaport. Additionally, AD Ports is leading a project in Sudan to build and operate the Abu Amama port and economic zone the reports highlighted.

The development of key ports and logistics hubs improves regional connectivity, facilitating smoother and more efficient trade routes within Africa and with the rest of the world.

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By securing long-term port concessions, GCC states are enhancing their geopolitical influence in Africa, positioning themselves as key players in the continent’s economic development.

The report further highlighted that the UAE’s expansion into the African port sector is further supported by its airline companies’ outreach to the continent. This strategic move aims to capitalize on the rapid growth of intra- and extra-African trade and to secure the UAE’s control over key import-export routes, connecting Africa with the Middle East, Asia, and Europe.

For GCC states, these investments represent a move to diversify their economies, reducing dependence on oil revenues by tapping into the growing African market.

According to EIU, here are the port concessions held by these GCC giants across Africa

DP World’s Strategic Port Concessions

DP World, a global leader in port operations, has established a substantial presence in Africa by securing long-term concessions to develop and manage critical seaports and inland ports. Here is a detailed look at their major African concessions:

Algeria

Djazair: This port is a key entry point in North Africa, facilitating significant trade volumes and serving as a crucial link between Europe and Africa.

Djen Djen: Known for its deep-water capabilities, Djen Djen port handles substantial cargo volumes, enhancing Algeria’s trade capacity.

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Egypt

Sokhna: Located near the Suez Canal, Sokhna port is pivotal for global maritime trade, linking the Red Sea with the Mediterranean.

Senegal

Dakar: As a major West African port, Dakar plays a crucial role in regional trade.
Ndayane: This upcoming port project is set to significantly boost Senegal’s maritime infrastructure.

Somalia

Berbera: Strategically located along the Gulf of Aden, Berbera port serves as a key trade hub in the Horn of Africa.
Bosaso: Enhancing Somalia’s maritime capabilities, Bosaso port facilitates regional trade.

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Rwanda

Kigali: An inland port, Kigali serves as a critical logistics hub for landlocked Rwanda, connecting it to regional and global trade networks.

Democratic Republic of Congo

Banana: This port on the Atlantic coast is essential for the DRC’s trade, providing access to global markets.

Angola

Luanda: As Angola’s main port, Luanda handles the majority of the country’s maritime trade.

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Tanzania

Dar-es-Salaam: A major East African port, Dar-es-Salaam is vital for Tanzania’s trade and regional connectivity.

South Africa

Komatiport: This inland port enhances South Africa’s logistics capabilities, facilitating trade within the region.

Mozambique

Maputo: Serving as a key maritime gateway, Maputo port supports Mozambique’s trade and economic growth.

AD Ports Group’s Key Port Concessions

AD Ports Group, another major player from the UAE, has also secured significant port concessions across Africa. Here are the notable concessions under their control:

Egypt

Port Said: Located at the northern entrance of the Suez Canal, Port Said is critical for global maritime traffic.
Safaga: Enhancing Egypt’s Red Sea port capabilities, Safaga port supports trade and tourism.

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Sudan

Abu Amama: This port strengthens Sudan’s maritime infrastructure, facilitating trade and economic development.

Guinea

Kamsar: Known for its mineral exports, Kamsar port is vital for Guinea’s economy.

Congo-Brazzaville

Pointe-Noire: As a major Central African port, Pointe-Noire plays a crucial role in regional trade.

Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.

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