The United Arab Emirates (UAE) has solidified its position as the largest investor in Africa’s new business ventures, committing $110 billion between 2019 and 2023. This surpasses traditional players such as the UK, France, and China, spotlighting the UAE’s growing influence on the continent.
According to Middle East Monitor, $72 billion of the UAE’s investment has been allocated to renewable energy projects, signaling a strong focus on green energy development. African leaders have welcomed these investments, particularly for their potential to advance energy transitions and infrastructure improvements.
Ahmed Aboudouh, an associate fellow at Chatham House, remarked:
“African countries are in dire need of this money [for] their own energy transitions.” 
Key UAE Companies Driving Investments
Several major Emirati companies are leading the UAE’s investment strategies in Africa. For instance:
- DP World operates six ports across the continent, bolstering Africa’s trade logistics.
- Abu Dhabi Ports has expanded its operations in countries such as Guinea, Egypt, and Angola.
- International Resource Holdings, linked to Sheikh Tahnoon bin Zayed, secured a $1.1 billion deal for a 51% stake in Zambia’s Mopani Copper Mines.
These initiatives align with the UAE’s ambition to diversify its economy beyond oil and gas by strengthening its presence in Africa’s infrastructure sector.
Challenges and Concerns
Despite its economic contributions, the UAE’s investments in Africa have faced scrutiny. Financial difficulties at Zambia’s state-owned ZESCO have stalled solar projects, while Swissaid reports reveal $115.3 billion in unaccounted gold exports to Dubai between 2012 and 2022, raising concerns about trade transparency.
Ken Opalo, a professor at Georgetown University, cautioned about the risks of increased foreign attention on Africa:
“There is also the opportunity for the attention to breed criminality—like we are seeing in the gold sector.”
The Broader Impact of UAE-Africa Economic Ties
The UAE’s Ministry of Economy recently confirmed the country as the fourth-largest global investor in Africa, with total investments reaching $60 billion. Additionally, over 21,000 African companies are currently operating in the UAE, underscoring the robust economic ties between the two regions.
While UAE investments in Africa present significant opportunities for economic growth and development, they also demand increased oversight to address concerns surrounding labor rights, environmental standards, and trade transparency.
As these partnerships evolve, balancing economic benefits with ethical and sustainable practices will be crucial.
Read More:
