DP World, one of the world's largest port operators, signed a preliminary agreement with the Angolan government to develop the country’s trade and logistics sector.
The parties will explore co-operation in the areas of ports and terminals, special economic zones, cross-border trade and finance and marine services, according to a statement from the Dubai Media office on Wednesday.
DP World is already active in Angola and is developing the multi-purpose terminal at Port of Luanda with a total investment of $190 million to turn it into a maritime hub along the western coast of southern Africa.
“Alongside the multi-purpose terminal, there is still tremendous opportunity to further develop and integrate the country’s logistics and trade infrastructure and unlock more economic benefits,” Sultan bin Sulayem, group chairman and chief executive of DP World, said.
“The Angolan government has an ambitious plan for this sector, and through this deal our primary objective is to find ways in which we can support the country to significantly maximise its strategic location and increase trade flows domestically and in the surrounding region.”
Angola is the largest oil producer in Africa after Nigeria. Its economy depends heavily on hydrocarbon production, making its economy vulnerable to oil price swings.
“With this partnership, it will be possible to promote and boost Angola's industrial development, as well as its cross-border and international trade,” Ricardo Viegas d’ Abreu, Angola’s Minister of Transport, said.
DP World is increasing its investment in Africa. It is building a port in Senegal with a total investment of $1 billion. Construction began last month.
It also has other investments in Egypt, Algeria, Rwanda and Mozambique, among others.
The company, which has yet to announce its full 2021 results, expects strong business growth in the year as the world economy continues to recover from the pandemic-induced slowdown, a senior executive said last week.