The United Arab Emirates has rapidly positioned itself as the largest investor in new business ventures across Africa, offering a potential lifeline for the continent’s green energy ambitions. However, these investments are also sparking worries over labor rights and environmental protections.
Between 2019 and 2023, UAE companies announced an impressive $110 billion in projects across Africa, including $72 billion targeted at renewable energy, according to FT Locations, a data firm owned by the Financial Times. This figure dwarfs commitments from the UK, France, or China, as these nations have scaled back their investment in large infrastructure projects amid underwhelming returns and waning trust from African leaders over unmet climate finance pledges.
At global forums like COP29, wealthy countries pledged $300 billion annually for climate financing, far short of the $1.3 trillion demanded by developing nations. Against this backdrop, African leaders have welcomed the UAE’s growing interest, even as some analysts express reservations.
The UAE’s deepening involvement in Africa reflects its strategy to diversify away from oil and gas. Emirati companies have become key players in sectors like renewable energy, mining, agriculture, and telecommunications. Dubai’s DP World, for instance, has been managing African ports since 2006, with operations spanning six locations and plans for expansion. Similarly, Abu Dhabi Ports has secured concessions in Angola, Egypt, and the Republic of Congo.
The mining sector has also seen significant disruption. In Zambia, International Resource Holdings (IRH), part of a conglomerate led by Sheikh Tahnoon bin Zayed Al Nahyan, acquired a majority stake in Mopani Copper Mines for $1.1 billion. This unexpected deal edged out Chinese and South African competitors, with Zambian officials citing IRH’s commitment to preserving jobs and investing in the mine as decisive factors.
However, not all Emirati promises have come to fruition. In Mauritania, a $34 billion green hydrogen project announced in 2023 remains in its preliminary stages, while a $2 billion solar initiative in Zambia has been delayed due to financial struggles at the state-owned utility ZESCO.
Critics also highlight troubling trends tied to Emirati interests, including the rise of illicit gold smuggling to Dubai. A study by the NGO Swissaid revealed a discrepancy of over 2,500 tons of gold between Africa’s official exports and Dubai’s reported imports from 2012 to 2022, amounting to $115 billion.
Despite these challenges, Emirati investments have injected fresh momentum into Africa’s development landscape. As these projects unfold, the balance between economic opportunity and ethical concerns will remain a focal point for both leaders and observers.