The UAE has become Africa’s largest investor in new business projects, committing $110 billion between 2019 and 2023, according to The Guardian, citing FT Locations. Of this, $72 billion has been allocated to renewable energy, surpassing investments from the UK, France, and China as traditional investors reduce their spending.
African leaders have welcomed the UAE’s growing focus on green energy and infrastructure. Ahmed Aboudouh, associate fellow at Chatham House, commented, “African countries urgently need this money for their energy transitions. However, Emirati investors often pay less attention to labor rights and environmental standards.”
The UAE’s investments align with its goal of diversifying away from oil and gas. Key contributors include Dubai’s DP World, which operates six African ports, and Abu Dhabi Ports, active in Guinea, Egypt, and Angola. Additionally, International Resource Holdings, linked to Sheikh Tahnoon bin Zayed, acquired a 51% stake in Mopani Copper Mines in Zambia through a $1.1 billion deal.
However, challenges remain. A $34 billion green hydrogen project in Mauritania is still at the memorandum stage. In Zambia, financial issues with state-owned ZESCO have delayed solar projects. Concerns about smuggling have also surfaced, with Swissaid reporting $115.3 billion in unaccounted gold exports to Dubai between 2012 and 2022.
