Friday, 14 June 2024

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INVESTMENT WATCH

DP World eyes USD 3 bn in port investments in Africa

The logistics giant is considering investments in the partial privatization of South Africa’s Transnet and the port of Lamu in Kenya

DP World plans to shell out USD 3 bn on new port infrastructure in Africa over the next three to five years, DP World CEO and Managing Director for sub-Saharan Africa Mohammed Akoojee told Bloomberg in an interview. The logistics giant is considering investments in the partial privatization of South African rail, port, and pipeline company Transnet, and the port of Lamu in Kenya, where there is also a privatization process underway.

The rationale: The investment target comes on the back of the region’s long-term growth potential, Akoojee said, adding that “the cost of logistics and supply chain across Africa is very high relative to other global markets.” Heightened demand for critical minerals also signals the need for greater logistics capacity. “We’ve seen demand increasing over the last few years, largely driven by the whole electrification drive globally and the demand for commodities like cobalt, lithium,” Akoojee added.

OTHER INVESTMENT NEWS-

Brookfield Asset Management eyes USD 5 bn first close for climate fund: Canada’s Brookfield Asset Management aims to raise USD 5 bn for the UAE-backed Catalytic Transition Fund (CTF) to boost climate finance in emerging markets as part of its first close before the end of the year, it said in a statement yesterday. The Catalytic Transition Fund (CTF) is anchored by a USD 1 bn commitment from Alterra fund set up by the UAE during Cop28.

What we know: Brookfield will contribute at least 10% of the capital. Alterra recently said it will direct an extra USD 200 bn to investments over the next six years, after saying it aims to mobilize USD 250 bn in green investments by 2030.

About the fund: The USD 30 bn vehicle was launched last year to increase climate funding for the Global South. Alterra’s initial commitment — along with BlackRock, Brookfield, and TPG — was USD 6.5 bn to climate-dedicated funds.