Cargo at the Dar es Salaam Port immediately after off-loading from a ship. DCG is the only purpose-built dry cargo handling terminal in sub-Sahara. photo | file
What you need to know:
The DCG terminal is the only purpose-built dry bulk cargo handling terminal in sub-Saharan Africa and offers a secure, reliable and cost effective means of handling commodities
Dar es Salaam. Jacana Partners, which is the Pan-African SME private equity firm, and Soros Economic Development Fund, a nonprofit private foundation, have invested in the DSM Corridor Group, a bulk cargo handling business in Dar es Salaam.
The transaction marks both Jacana and Sedf’s first investments in Tanzania.
DSM Corridor is the leading dry bulk cargo handling company at the port of Dar es Salaam. It was founded in 2004. Its services include ship to shore discharge of cargo, container stuffing and de-stuffing and logistical services for the forwarding of materials.
The DCG terminal is the only purpose-built dry bulk cargo handling terminal in sub-Saharan Africa and offers a secure, reliable and cost effective means of handling commodities for companies operating in East Africa.
The investment will finance the expansion of DCG’s storage capacity with respect to both volume and the range of commodities.
A new cargo handling site will contribute to the development of the regional trade corridor.
The investment will have a significant social impact, helping to create up to 150 new jobs and will also increase port efficiency, thereby supporting the growth of key sectors of the economy such as agribusiness, mining and construction.
Erik Kok, DCG’s chief executive officer said: “We look forward not only to the access to capital to continue to grow our business, but also the deep experience that Jacana and SEDF teams bring to the table.
“Their value-adding contribution was an important consideration for us in deciding to partner with Jacana and SEDF.
“The transaction marks an important milestone in DCG’s history as we continue on our journey towards becoming one of the leading dry bulk cargo handling companies in East Africa.
“This investment will allow us to accelerate our growth, releasing constraints on our business.”
For his part, Mr Ezra Musoke, Partner at Jacana said: “Tanzania is a high-growth market with a flourishing SME sector. DCG is a prime example of the attractive investment opportunities that can be found in the country: a well-established business with a strong market position, long-term customer relationships and potential for further growth.
