DP World aims to strengthen its position as the leading market access and logistics provider in Africa with its stake in the Nigerian firm.
DP World’s wholly-owned company Imperial, the leading logistics services provider in Africa, has taken a controlling stake in Africa FMCG Distribution (AFMCG). AFMCG offers a nationwide route-to-market solution across multiple channels in Nigeria and offers services in co-manufacturing, co-packing, sourcing, and value-added services in the fast-moving consumer goods (FMCG) sector. The company’s supply chain services reinforce DP World’s presence in a continent with a population of 1.4 billion across 54 nations.
Strengthening trade partnerships
The move is seen as part of Dubai’s ongoing efforts to strengthen trade partnerships across Africa and its attempts to further its position as a leading international business hub with a focus on high-growth markets, including Africa.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said, “This transaction is aligned with our ambition of becoming the leading market access and logistics partner in Africa by connecting trade flows into and out of Africa. AFMCG offers strategic value to DP World from a supply chain and fintech perspective, in line with our strategic objective of leveraging assets and logistics to create an integrated global supply chain – from the factory floor to the customer’s door.”
DP World’s expansion of its African business
With these goals in mind, DP World has expanded its African businesses across key sectors including ports, logistics trade corridors and e-commerce. The continent’s central location in regard to global trade makes it ideally suited for investment.
“Being one of the largest economies on the African continent with attractive demographic and macroeconomic fundamentals, Nigeria boasts a significant consumer market. AFMCG presents an ideal opportunity with the necessary scale for us to leverage to sell truly pan-African solutions to our principals and clients,” said Mohammed Akoojee, COO of DP World Logistics and Group CEO at Imperial.
Subodh Chanrai, chairman of AFMCG, said, “This strategic transaction further enhances our foothold in this significant market and allows us to offer further benefit to our principals and keep pace with the evolving needs of the African consumer.”
Africa’s potential for DP World
According to analysts, African trade is set to grow at more than twice the continent’s combined GDP. DP World currently operates nine ports and terminals across Africa, with sites in Algeria, Angola, Egypt, Mozambique, Rwanda, Senegal, Somaliland, and South Africa. With a GDP in excess of USD 430 billion in 2020, Nigeria is a gateway to African trade.
Dubai recently ranked fifth in the ISCD Index of leading global ports.