UK eyes investment in Somalia port with DP World

The joint investment will eventually be expanded to other African countries [File photo]

DUBAI - Britain's development finance agency CDC Group has hired Citi to advise it on up to $1.72 billion in logistics infrastructure investments it plans to deploy in Africa jointly with Dubai ports giant DP World, two sources said.

A CDC spokesperson confirmed to Reuters via email that it worked with Citi on the transaction.

The investments will initially focus on expanding ports operated by DP World in Egypt's Ain Sokhna, Senegal's Dakar, and Berbera in Somalia's breakaway region of Somaliland, CDC said this week.

State-owned DP Word has committed to investing $1 billion over the next several years, while CDC has committed $320 million and could potentially invest up to a further $400 million.

The partnership plans to invest, along with ports, in infrastructures such as container depots and business parks.

CDC, which is owned by the British state, will own minority stakes in the three ports, with DP World handing over some shares in each.