UAE Tops Africa as Largest Investor, Surpassing China
Outpacing China, the UAE boosts Africa's renewable energy and infrastructure amid labor and environmental concerns
UAE Emerges as Africa’s Largest Investor with $110 Billion in Projects
The UAE has emerged as Africa’s biggest backer of new business projects, with Emirati companies investing $110bn (£88bn) in renewable energy between 2019 and 2023, including $72bn in renewable energy, The Guardian reports, citing FT sources. The pledges will outpace investments from the UK, France and China as traditional investors pull back.
The UAE’s increased financial interest, particularly in green energy and infrastructure, has also been welcomed by African leaders. “African countries desperately need this money for their own energy transitions,” said Ahmed Aboudouh, an associate fellow at Chatham House. “But at the same time, [Emirati investors] come with less attention to labour rights, environmental standards.”
The UAE’s investment ambitions are in line with its strategy to diversify away from oil and gas. Major players include Dubai’s DB World, which operates six African ports, and Abu Dhabi Ports, which has expanded operations in Guinea, Egypt and Angola. In Zambia, International Resources Holdings, a joint venture linked to Sheikh Tahnoon bin Zayed, won a $1.1 billion deal for a 51 percent stake in Mopani Copper Mines.
However, some investments face hurdles. A $34 billion green hydrogen project in Mauritania is in the planning stages, while financial problems at Zambia’s state-owned ZESCO have stalled solar efforts. And researchers have highlighted concerns about smuggling, with a Swiss report finding that Dubai exported $115.3 billion in unaccounted gold between 2012 and 2022.
As African countries increasingly turn to the UAE for financial assistance, critics warn of potential risks. “As we see in the gold sector, there is also the potential for crime to flourish,” says Ken Opalo of Georgetown University.
Last month, the UAE’s Ministry of Economy noted that the UAE is the largest GCC member state and the fourth largest global investor in Africa, although this has been the case for the past decade, according to Foreign Policy.
“The UAE’s investment in Africa currently stands at USD 60 billion, and the country is home to more than 21,000 African companies operating in key economic sectors,” the ministry said at the time, adding that the UAE is also a leading export destination for African markets.
