By Ajong Mbapndah L
DP World is focused on enhancing Africa’s supply chain by leveraging its global and local expertise to drive the continent’s economic growth through trade, says Mohammed Akoojee, CEO & MD for Sub-Saharan Africa. Fielding questions from PAV, Mohammed Akoojee says DP World’s Imperial business has been operating in Africa for over 70 years and during that time has established extensive knowledge and expertise in terms of operating African markets.
“With a reach spanning 48 countries across sub-Saharan Africa, DP World has the relevant experience, skillset, and knowledge of operating in Africa. DP World offers a comprehensive suite of solutions, unparalleled expertise and experience and scale, says Akoojee.
On the Tanzania Ports deal that was met by some with mixed reactions, Mohammed Akoojee said DP World’s investment will have a positive impact on the country’s socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.
“DP World will invest more than $250 million to upgrade the port over the first five years and the Investment could increase to $1 billion during the concession period alongside hinterland logistics projects,” Akoojee said.
May we get an introduction of DP World and its operations or networks in Africa?
Mohammed Akoojee: Trade is at the centre of the global economy, creating opportunities and improving the quality of life for millions of people around the world. DP World is here to make trade flow better, changing what’s possible for the customers and communities we serve globally. With more than 106,000 employees across 75 countries, we are pushing trade further and faster towards a seamless supply chain that’s fit for the future. By integrating our physical infrastructure with cutting-edge technology, we create efficient end-to-end solutions, pushing the sector towards better ways to trade, minimising disruptions from the factory floor to the customer’s door.
DP World’s service offering in sub-Saharan Africa comprises Logistics (parks and economic zones, contract logistics, freight management), Market Access and Ports & Terminals. We have a presence in 48 countries in the region through owned operations and partnership networks, supported by c.27,000 employees. With a fleet of more than 6,300 vehicles, over 260,000 points of sale, 1,5 million m² of warehouse space and total TEU capacity at ports of over 2 million, our reach is unparalleled.
What has the experience typically been like for DP World in doing business across Africa, where have you seen progress, and what are the challenges faced?
Mohammed Akoojee: DP World is focused on enhancing Africa’s supply chain by leveraging our global and local expertise to drive the continent’s economic growth through trade. Specifically, DP World’s Imperial business has been operating in Africa for over 70 years and during that time has established extensive knowledge and expertise in terms of operating African markets.
Africa has seen socioeconomic progress and still has significant growth potential. The continent has experienced strong growth driven by an emerging consumer class and resources. The compound annual growth rate for real GDP is expected to grow by 4.3% between 2022 and 2027. Moreover, Africa’s population is predominantly youthful, with 70% of it being less than 30 years old, whilst only 3% is older than 65 years. Importantly, albeit relatively low to other regions, intra-Africa trade is growing at 3.9% (CAGR).
However, Africa still faces key challenges including the significant infrastructure gap that the continent faces, which limits sustainable economic growth.
In the face of competition from other actors and partners, what does DP World offer Africa differently, why should countries prioritize working with DP world as opposed to some other companies?
Mohammed Akoojee: DP World offers a compelling client value proposition, and our vision is to create end-to-end integrated global supply chain solutions from factory floor to customer door. In Africa, we provide customers with access into and out of the continent, by providing integrated end-to-end supply chain solutions in key markets, which is critical to giving customers visibility, reliability, and flexibility of their supply chains. In addition, we operate in key industries of the economy including healthcare and pharmaceuticals, automotive, industrial, technology and perishables among others.
With a reach spanning 48 countries across sub-Saharan Africa, DP World has the relevant experience, skillset, and knowledge of operating in Africa. DP World offers a comprehensive suite of solutions, unparalleled expertise and experience and scale in SSA including:
Parks and economic zones
Freight management
Contract Logistics
Market Access
Ports & Terminals
DP World’s local relevance and expertise, coupled with its world class infrastructure, allows us to meet our client and principals’ needs across the continent. We integrate best-in-class facilities, multimodal transport solutions, digital solutions and market access capabilities into seamless end-to-end supply chains.
What further differentiates us from our competitors is that we develop special economic zones next to our ports. In addition to the job creation opportunities for the host country, these economic zones streamline trade by centralising end-to-end transport, warehousing and tax-effective trading solutions in one place while investing in the development and growth of our countries and communities of operation. This ensures that supply chains are more accessible, sustainable and affordable for all.
Our purpose is to make the world flow and change what’s possible for everyone. We aim to achieve this with fast, sustainable movement of products through a single platform for trade.
Could we get insights into the recent partnership that was signed with the Republic of Tanzania?
Mohammed Akoojee: DP World signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernise the multi-purpose Dar es Salaam Port, connecting Tanzania and the wider region to global markets.
The concession agreement was signed between Mr Plasduce Mkeli Mbossa, Director General of the TPA and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, in the presence of H.E. Samia Suluhu Hassan, President of the United Republic of Tanzania.
The concession to operate and modernise the Dar es Salaam Port was awarded to DP World with the primary objective of optimising the Port’s operations to improve transport and logistics services throughout Tanzania and its hinterland. This is the first phase of a multi-phase investment plan. DP World will initially invest more than $250 million to upgrade the port and the investment could increase to $1 billion during the concession period, alongside hinterland logistics projects. This investment will have a positive impact for Tanzania’s socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.
How challenging was it for you to get this particular contract or partnership and what does Tanzania stand to gain from it?
Mohammed Akoojee: The Emirate of Dubai and Government of Tanzania signed an Inter-Governmental Agreement last year which allowed DP World to enter into bi-lateral negotiations for the port concession. From a process perspective, we followed all due process in line with the Inter-Governmental Agreement.
DP World is excited about the prospect of running the Dar es Salaam Port. This is a key part of our vision to transform African trade and helping to improve the port’s operations will enhance the flow of trade across East Africa and beyond.
In addition to the port, DP World’s interest is also focused on improving transport and logistics services throughout Tanzania and its hinterland with the investment being the first step in a multi-phase engagement that could potentially see DP World invest up to $1 billion within Tanzania.
Other potential follow-on investments include:
Investing in cold and cool storage to enable Tanzania to export more of its high value agricultural production (e.g. avocados, chilli etc.).
Rail-linked logistics platforms across the country to enable Tanzania to benefit from the government’s massive investment in rail (approx. $6bn). Currently more than 95% of cargo enters/leaves ports by truck.
Developing a special economic zone to support value addition to Tanzania’s agricultural production.
Now, there has been some stiff opposition or push back to this deal. How does DP World respond to critics and reassure Tanzanians that the deal is also a win for them and not just DP World?
Mohammed Akoojee: DP World’s investment will have a positive impact for Tanzania’s socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.
DP World will invest more than $250 million to upgrade the port over the first five years and the Investment could increase to $1 billion during the concession period, alongside hinterland logistics projects.
May we know the impact that the criticisms from Tanzania had on DP World and the morale of it its team in other parts of the continent?
Mohammed Akoojee: There was no adverse impact on DP World and the morale of our employees in the region. Our employees are aware that we had followed all due process in line with the Inter-Governmental Agreement signed between the Government of Tanzania and the Emirate of Dubai, which allowed DP World to enter into bi-lateral negotiations for the port concession and the team is excited about the positive impact this port will have on Tanzania.
Based off your experiences on the continent, any suggestions on how the investment climate could be made better or more attractive to investors?
Mohammed Akoojee: The investment climate can be improved through better governance, institutional capacity, adequate infrastructure and prudent macroeconomic policy, among other factors.
For the good business that DP World seems to be doing in Africa, how does the company give back to the community?
Mohammed Akoojee: As a responsible corporate citizen, DP World prioritises making a meaningful impact on the lives of people in all our regions of operation across the world. In sub-Saharan Africa (SSA), DP World invests in social impact projects in communities across many of its markets, supporting upliftment of people of all demographics and backgrounds.
Through this ongoing investment over many years, DP World’s intention is to support a more equitable and sustainable society, with thriving communities. As a result of these efforts, DP World has provided support to over 2.5 million beneficiaries globally since 2014. In 2022, our charitable donations and community investments totaled over $17.5 million, of which $4.9 million was in the Middle East and Africa region. Our Imperial business, which DP World acquired in March 2022, additionally spent $1.37 million on community investment in F2022.
After Tanzania, what next for DP World, any other deals or projects coming up?
Mohammed Akoojee: DP World continues to make significant investments in ports and logistics on the continent to realise its Africa strategy and growth ambitions, which aim to boost economic growth and uplift local communities and businesses through enabling trade and connecting markets to the global trade ecosystem.
*Culled from November Issue of PAV Magazine.
