- Title: DP World chairman says Djibouti dispute hurt company's ability to borrow
- Date: 22nd October 2019
- Summary: DORALEH, DJIBOUTI (FILE - FEBRUARY 7, 2009) (REUTERS) (ORIGINALLY 4:3) DP WORLD SIGN ON QUAYSIDE AS TRUCKS ARE LOADED WITH CARGO WORKERS ON BOARD SHIP DP WORLD SIGN ON QUAYSIDE AS TRUCKS ARE LOADED WITH CARGO
- Embargoed: 5th November 2019 12:38
- Keywords: DP World port inaugration Rwanda Kigali Djibouti
- Location: KIGALI, RWANDA/ DORALEH, DJIBOUTI
- City: KIGALI, RWANDA/ DORALEH, DJIBOUTI
- Country: Rwanda
- Topics: Economic Events
- Reuters ID: LVA002B26IST3
- Aspect Ratio: 16:9
- Story Text: EDIT CONTAINS ORIGINAL 4:3 MATERIAL
Global ports operator DP World has struggled to borrow from banks to finance new investments since a port it partially owns in Djibouti was seized by the government there in 2018, its chairman said on Monday (October 21).
DP World Chairman Sultan Ahmed bin Sulayem made this statement in Rwanda's capital Kigali, where the company opened a $35 million logistics platform.
The government of Djibouti seized the Doraleh Container Terminal from Dubai government-controlled DP World in February 2018 over a dispute dating back to at least 2012.
DP World called the seizure illegal, and the London Court of International Arbitration ruled in August 2018 that the company's contract in Djibouti was valid and binding.
"This is the bad message sent to investors. That's why you see the interest rate so high, now look at the rating of Djibouti it's very bad. Nobody will put money there. And it reflects on us badly because we're looking to building other ports in Africa. The minute you want to borrow money they have an example of a country that have violated their agreement and did not honour it and did it. So what Djibouti did hurt Djibouti, hurt Africa, more than us because we are insured and everything and we'll recover. But still we have court orders that they are refusing to honour and that will cause even punitive action by the courts on Djibouti," Sulayem said.
He added the company is continuing to operate legally in Djibouti, although the government has claimed that the company's operations have ceased.
Sulayem said the company is also active in Somalia, Mozambique, Senegal, and Mali and has signed an agreement to develop a port in the Democratic Republic of Congo (DRC).
He said the company's new platform in Kigali will further landlocked Rwanda's efforts to become a trade hub for neighbouring countries including DRC and nearby Kenya, reducing the costs of importing and exporting via the Indian Ocean ports in Mombasa and Dar es Salaam.
President Paul Kagame formally opened the facility which he said would help Rwanda.
"Trade agreements and economic policies won't have much impacts without new infrastructures. With the launch of this facility, Rwanda is doing its part to connect with the larger market of more than 1.2 billion consumers in Africa and beyond. The Kigali logistics platform is really getting up and running," Kagame said.
(Production: Themistocle Hakizimana, Angie Ramos)
- Copyright Holder: FILE REUTERS (CAN SELL)
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