UK & DP World to Invest $35 Million in Congo’s New Port
British International Investment (BII), the UK’s development finance institution and impact investor alongside with the UAE’s DP World, will invest up to $35 million towards the development of the first phase of a new container port in Congo.
Congo is Africa’s second largest country and the fourth most populous on the continent. The Port of Banana will be the country’s first deep-water container port. By enhancing the DRC’s direct access to international markets, it will unlock the country’s international trading potential for the benefit of millions of its people.
The commitment to the Port of Banana is an extension of the partnership between BII and global ports and logistics operator, DP World, that commenced with the modernisation and expansion of ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland) in 2021. As with the other ports in the partnership, BII will be a minority investor in the new port.
The three ports under the original partnership agreement between BII and DP World will improve access to vital goods for approximately 35 million people, support 5 million jobs (enabling the creation of 138,000 new ones) and enable an additional $51 billion to total trade by 2035. Additionally, they will reduce further logistics costs, generate employment, transform lives, and stimulate economic growth across these markets and the continent, BII said on Tuesday.
Unlocking Trading Potential
With a draft of 17.5 meters, the Port of Banana will receive large container vessels from around the globe and will become the single gateway for imports and exports of containers in Congo and these efficiencies are expected to cut the cost of trade in DRC by 12%.
Its development will enable the creation of approximately 85,000 jobs and $1.12 billion in additional trade and $429 million in increased economic outlook – equivalent to a 0.65% increase in Congo’s GDP, according to an evaluation commissioned by BII.
The port is being developed in multiple phases and its capacity is expected to gradually increase over time.
It will be connected to a network of additional infrastructure, including a free zone and multimodal logistics infrastructure to the country’s largest urban centres, including Kinshasa and its almost 17 million inhabitants, via the cities of Boma and Matadi. The 578 km Banana-Matadi-Kinshasa trade corridor is home to about 54 million people, who will benefit economically from the new port.
Boosting Economic Welfare
The Port of Banana will greatly improve economic welfare for the lowest-earning rural households in the African nation. About one-third of the new jobs supported by the trade through the port are expected to be in agriculture, benefiting thousands of farmers and sector workers.
The UK Minister for Africa, Lord Collins of Highbury, said that the BII investment will help transform Congo’s economy, establishing the country as a major trading hub on the continent, and providing a significant boost to local sectors from infrastructure, logistics and green energy.
“Today’s announcement is a brilliant example of the UK-Congo partnership in action, working together to increase trade opportunities and drive sustainable economic growth that creates full and productive employment for many,” he added.
Chris Chijiutomi, Managing Director and Head of Africa for BII, said that the development impact case for investing in ports is irrefutable. Africa has a sixth of the world’s population, but accounts for just 4% of global containerised shipping volumes.
“Ports are vital to the long-term prosperity and wellbeing of countless people across the continent. The Port of Banana will play a major role in supporting the economic aspirations of millions living in Congo and this investment forms part of BII’s ongoing commitment to investing in key sectors in Africa, with further projects under development in the region,” Chijiutomi explained.
Mohammed Akoojee, CEO of Sub-Saharan Africa for DP World, said that this project is a significant step towards enhancing Congo’s trade infrastructure, unlocking economic potential, and creating jobs.
He added: “By reducing trade costs and improving access to global markets, we aim to support the DRC’s growth and prosperity. We look forward to the positive impact this development will have on the region and its people.”