DP World-owned Imperial has acquired a controlling stake in Africa FMCG Distribution in Nigeria as the global ports operator continues to expand its presence in the continent.
Part of the Chanrai Group of Companies, AFMCG represents multinational fast-moving consumer goods (FMCG) companies and their brands and distributes various products across the African continent. Its services also extend to co-manufacturing, co-packing, sourcing and value-added services in the FMCG sector, the Dubai Media Office said in a statement on Tuesday.
It also offers a nationwide route-to-market solution across multiple channels in Nigeria.
No further details of the transaction were disclosed.
“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,” Sultan Ahmed bin Sulayem, group chairman and chief executive of DP World, said.
“AFMCG boasts unmatched route-to-market solutions in Nigeria. It also 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,” he added.
The move is in line with the Dubai government’s five-year strategy to boost trade ties with promising global markets, the statement said.
Last year, Dubai adopted a five-year foreign trade plan to boost its status as an international business hub, focusing on high-growth markets in Africa, Latin America and Asia.
DP World is one of the world’s biggest operators of marine ports and inland cargo terminals, with gateways from London and Antwerp and hubs in Africa, India, Russia and the Americas.
The Dubai-based company has been on an acquisition spree as it attempts to become a more diversified and integrated logistics company.
It has been focusing on Africa, and in February, concluded its acquisition of South Africa’s Imperial Logistics.
DP World currently operates nearly nine ports and terminals across eight African countries, including Algeria, Angola, Egypt, Mozambique, Rwanda, Senegal, Somaliland and South Africa.
With a surging population of more than 1.4 billion across more than 50 nations, Africa is “centrally positioned to fit into the global trade and supply chains”, the statement said
“Developing trade corridors and port infrastructure is critical to connecting the continent to drive economic growth and development,” it added.
“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,” Subodh Chanrai, chairman of AFMCG, said.