British International Investment, the UK’s development finance institution and impact investor, has committed to investing up to $35 million in the development of the first phase of a new container port in DRC, according to a release.
The DRC is Africa’s second-largest country and fourth-most populous. The Port of Banana will be the country’s first deepwater container port. Enhancing the DRC’s direct access to international markets will unlock the country’s international trading potential, benefiting 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, which commenced with the modernization 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.
With a draft of 17.5m, 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 the DRC. These efficiencies are expected to cut the cost of trade in the DRC by 12 percent. Its development will enable the creation of approximately 85,000 jobs, c. $1.12bn in additional trade, and $429m in increased economic outlook—equivalent to a 0.65 percent increase in the DRC’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 centers, including Kinshasa and its almost 17 million inhabitants, via the cities of Boma and Matadi. The 578km Banana-Matadi-Kinshasa trade corridor is home to about 54 million people, who will benefit economically from the new port.
As the single maritime window for all containerised goods transported by sea in the DRC, the port will provide the country with logistical independence and ensure sovereignty over its foreign trade.
The Port of Banana will greatly improve economic welfare for the lowest-earning rural households in the DRC. 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.
Increased containerised trade in Western DRC will also make essential imported goods like clothing, textiles, food, pharmaceuticals, and consumer products cheaper and more accessible.
Source: Port News
