DP World is planning significant investments despite ongoing crises, reaffirming its commitment to expansion and development amid global economic challenges. The company aims to enhance its logistics capabilities and expand its operational network across the African continent, reflecting its ambitious strategy despite the complex conditions facing the markets. In this context, DP World continues to implement multiple projects, from port expansions to improving infrastructure in several African countries.
Expansion Projects in Africa
DP World is actively executing vital development projects for ports and infrastructure, ranging from Mozambique to the Congo, as part of its long-term expansion strategy. Mohammed Akouji, CEO and Managing Director of DP World in Africa, noted that the company has invested approximately $4 billion over the past five years, with plans to invest an additional $4 billion to enhance port corridors and logistics services. However, he cautioned about the impact of rising fuel prices on economic operations.
Impact of Rising Prices
In an interview with Bloomberg, Akouji explained that the increase in operational service prices due to rising gasoline and diesel costs has a direct effect on inflation levels. Additionally, the ongoing conflict and the closure of the Strait of Hormuz deepen the negative impact on African economies. Since late February, the closure of the maritime corridor in the Gulf has disrupted about one-fifth of global oil and gas shipments, with crude prices exceeding $100 per barrel. In this context, DP World operates over 7,000 trucks in Africa, leading to a fuel cost increase of approximately 75% in South Africa, which places the burden of these increases on customers.
Infrastructure Development
Akouji pointed out that the closure of the Strait of Hormuz has negatively affected some shipping routes linked to the Jebel Ali hub, impacting the flow of goods to and from the port of Berbera in Somalia and into Ethiopia. The company is currently working to upgrade the infrastructure connecting ports with regional supply routes, including links between Tanzania, Rwanda, Zambia, and the Congo. DP World is also pursuing its strategic expansion projects, including the development of the port of Maputo in Mozambique and the establishment of the first deep-water port in the Democratic Republic of the Congo, which is expected to be completed in the first quarter of next year.