Controlling Stake Acquired in Dubai’s Bid to Increase Trade in Africa

  • July 13, 2022
Controlling Stake Acquired in Dubai’s Bid to Increase Trade in Africa

Fast-moving consumer goods are distributed across the African continent by Africa FMCG, which is owned by Dubai logistics behemoth DP World and now has a controlling interest in it.

The action is a part of the Dubai company’s continued growth in Africa, which it views as a crucial market with a growing population of 1.4 billion people spread across 50 countries.

According to Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, “this deal is in line with our objective to become the top market access and logistics partner in Africa by connecting trade flows into and out of Africa.” In keeping with our strategy goal of using assets and logistics to establish an integrated global supply chain, he proceeded by stating that strategic value is added to the DP world with the help of a supply chain system and a fintech viewpoint is also provided.

Dubai has been vying in recent years to increase its trading relationships with significant international markets. With a focus on fast-growing regions like Africa, the emirate published a five-year foreign trade plan in 2021 to strengthen its position as a global commercial hub.

A key player in this Dubai goal is DP World. In eight African nations—Algeria, Angola, Egypt, Mozambique, Rwanda, Senegal, Somaliland, and South Africa—the company runs nine ports and terminals. The Dubai company wants to take advantage of Nigeria’s expanding economy and the possibilities it may present as a commercial gateway to the rest of Africa. Nigeria has a sizeable consumer market and is one of the major economies on the African continent with favourable macroeconomic and demographic fundamentals. According to Mohammed Akoojee, group chief executive officer at Imperial, “AFMCG gives an exceptional opportunity with the appropriate size for us to utilise to sell truly pan-African solutions to our principals and clients.