AD Ports 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, according to the company's release.
The agreement provides the basis for the two organisations to join forces on identifying, financing, developing and investing in 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.
Established in 2006, AD Ports Group today serves as the region’s premier facilitator of logistics, industry, and trade. Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones within KEZAD, the largest integrated trade, logistics, and industrial business grouping in the Middle East.
