The UAE has emerged as the top backer of new business ventures in Africa, committing $110 billion to projects between 2019 and 2023, outpacing investments from China, the UK, and France. The majority of these funds—$72 billion—are focused on renewable energy.
The UAE’s growing financial footprint in Africa aligns with its strategy to diversify its economy beyond oil and gas. African leaders have largely welcomed this influx of capital, particularly for critical sectors like green energy and infrastructure. However, concerns have been raised about the environmental and labour standards tied to these investments.
Key Highlights
- Scale of Investment: Between 2019 and 2023, Emirati companies pledged $110 billion to African projects, with $72 billion targeting renewable energy. This surpasses investments by traditional players like China, the UK, and France.
- Major Players: Notable contributors include Dubai’s DP World, managing six African ports, and Abu Dhabi Ports, with expansions in Guinea, Egypt, and Angola. Sheikh Tahnoon bin Zayed’s International Resource Holdings also secured a $1.1 billion deal for a 51% stake in Zambia’s Mopani Copper Mines.
- Green Energy Push: The UAE’s investments reflect its commitment to green energy, although some projects face challenges. For instance, a $34 billion green hydrogen project in Mauritania is still at the memorandum stage.
Concerns and Criticism
While African leaders value the financial support, critics highlight potential risks. Analysts point to concerns over labour rights, environmental standards, and the possibility of criminal activities, such as smuggling in the gold sector. Swissaid has reported $115.3 billion in unaccounted gold exports to Dubai between 2012 and 2022.
Ken Opalo of Georgetown University commented on the risks, stating, “There is also the opportunity for the attention to breed criminality—like we are seeing in the gold sector.”
UAE’s Economic Ties to Africa
The UAE’s Ministry of Economy recently reiterated the country’s strong investment ties with Africa. The UAE is home to over 21,000 African companies operating in key sectors and remains a major export destination for African markets.
