Sub-Saharan Africa is a rapidly growing market with vast potential to reshape the global trade landscape and drive holistic, positive change for communities that rely on trade as the lifeblood of access to quality products and services. Its pivotal impact makes everyday life better for millions of people in the region.
In June, DP World released the findings of its independently commissioned Socio-Economic Impact Assessment (SEIA) reports, prepared by Accenture, which reveal that the company created direct and indirect value of USD 6,75 billion (₦3,46 trillion) in Nigeria and USD 6,24 billion (R111,9 billion) in South Africa during its 2022 and 2023 financial years.
The SEIA report provides a comprehensive analysis of how DP World’s logistics, trade and infrastructure projects have impacted economic drivers such as job creation, economic growth, healthcare, resource efficiency and community development. The report highlights the substantial direct and indirect socio-economic benefits of DP World’s operations in Nigeria and South Africa despite macro-economic challenges such as the COVID-19 pandemic, ensuring that the organisation leaves a lasting impact for good on the communities in which it operates.
“In these challenging times, our commitment to sustainable development and community well-being is more critical than ever,” said Esha Mansingh, Head: Corporate Affairs & Sustainability for sub-Saharan Africa at DP World. “Our efforts in Nigeria and South Africa have not only supported direct and indirect jobs and improved healthcare access but have also strengthened supply chains and facilitated trade, laying the foundation for long-term economic stability and growth. We believe that our resilience and innovation are key to transforming the regions and communities in which we operate.”
In sub-Saharan Africa, DP World employs more than 28,000 people and operates across 48 markets. Its presence in the region, through its significant logistics, market access, and ports and terminals capabilities, is marked by DP World’s commitment to developing the continent and improving people’s lives through access to quality food, medicine, fuel, and many other necessities.
DP World plays a key role in connecting Africa to the world. The company invests in infrastructure, technology and talent to empower businesses, drive sustainable growth and shape the continent’s trade narrative.
Despite a challenging macroeconomic environment impacted by volatile commodity prices, high inflation, and geo-political tensions, DP World showed good progress over the reported period through the innovation and resilience of its people, and embedding sustainability throughout operations in both countries.
Mansingh stated, “We are proud to have sustained 19,000 direct jobs across the two countries and have solidified our market presence through strategic acquisitions that widen our business reach. We acknowledge the interconnectedness of the region and are intentional about widening connectivity throughout the continent for our customers.”
The organisation’s impact on communities transcends job creation and access to goods and services; it encompasses a commitment to catalysing positive transformation and effecting tangible social change in the markets in which it operates. This includes initiatives ranging from providing accessible healthcare solutions in underserved communities to leading efforts aimed at enhancing infrastructure and stimulating development.
In Nigeria, the company operates road freight, logistics warehousing, and Market Access Consumer and Healthcare businesses, managing over 17,000 sqm of healthcare warehousing, 28,000 healthcare outlets, and 240,000 distribution points.
In South Africa, DP World provides freight forwarding, bulk transport, contract logistics, and 4PL services, with a fleet of 4,250 vehicles, and over 719,250 sqm of managed warehouse space.
In South Africa alone, DP World’s initiatives have improved access to healthcare solutions in underserved communities, driving savings of USD 11 million for patients.
The trade landscape cannot thrive without a conducive and sustainable environment – which has been made all the more urgent as the world acknowledges the impact of climate change. Natural resources have become increasingly strained, placing an obligation on the shoulders of businesses to lower their carbon emissions and create sustainable practices in their operations.
DP World globally is advancing its decarbonisation strategy, targeting a 42% reduction in Scope 1 and 2 carbon emissions and 28% reduction in Scope 3 carbon emissions by 2030, and net-zero across all scopes by 2050.
Greenhouse gas emissions are grouped into three scopes, the first being emissions that are owned by the company such as from the burning of fuel in fleet. Scope 2 emissions arise from electricity use and Scope 3 emissions are indirect emissions incurred in the value chain because of the company’s activities.
By actively pursuing opportunities to minimise its environmental impact and promote efficient use of natural resources, DP World continuously embraces innovation across various fronts, including fleet management, alternative fuels, and water and waste recycling initiatives.
In South Africa, over the reporting period, this included achieving a 4,911-tonne reduction in emissions by recycling and using solar energy; a 4,911 MWh reduction in grid electricity using solar energy; and 2,2 million litres reduction in water usage through re-use initiatives. Fuel efficiency improvements for the commercial fleet continues to be a priority focus area.
In Nigeria, DP World demonstrated its resource efficiency through adding 150 new Euro 3 specification trucks, realising an 8% fuel efficiency improvement against Euro 2 equivalents.
Mansingh added, “In the broader trade ecosystem, our suppliers have the unique opportunity to harness the strength of DP World’s globally recognised brand and expansive international presence to fuel their own business growth. Through our procurement activities, we have not only reinforced their financial stability but also empowered them to scale and thrive within a highly competitive market.”
DP World has invested c. USD 3 billion in ports and logistics in Africa to date, including the acquisition of JSE listed Imperial Logistics in 2022 – a testament to the organisation’s long-term commitment to the region. Looking ahead, DP World remains committed to furthering its impact in Africa, with an additional c. USD 3 billion investment in ports infrastructure and logistics development planned over the next 3 to 5 years. These investments will not only enhance DP World’s operational capabilities but also contribute to economic development across the continent.
DP World operates within a complex business ecosystem of external stakeholders, including governments, regulatory bodies, industry associations, shareholders, and financial institutions. By maintaining strict compliance with local regulations and fostering collaborative relationships with regulatory authorities, the company mitigates risks while building trust and transparency across its markets.
Mansingh concluded: “Recognising the deeply interconnected nature of regional economies, DP World understands that its influence extends beyond national borders, shaping the economic landscape of neighbouring countries. With a strategic focus on enhancing connectivity across Africa, we are committed to driving seamless trade flows and unlocking transformative opportunities for all stakeholders involved, creating a more integrated and prosperous future for the continent.”