UAE Emerges as Africa’s Leading Investor, Surpassing China, UK, and France

Summary
The UAE has emerged as Africa’s largest investor in business projects, committing $110 billion from 2019 to 2023, with $72 billion in renewable energy. This surpasses investments by China, the UK, and France, whose past efforts disappointed African nations. While African leaders welcome the Emirati funds for energy transitions and infrastructure, concerns arise over labor rights, environmental standards, and illegal gold smuggling linked to UAE operations. Despite challenges, Africa views these investments as crucial to economic growth.

The United Arab Emirates (UAE) has become Africa’s largest investor in new business projects, signaling a surge of capital inflow across the continent. Between 2019 and 2023, Emirati companies committed an impressive $110 billion to projects, with $72 billion directed toward renewable energy. This level of investment exceeds the combined contributions of traditional players like China, the UK, and France, whose past efforts in infrastructure investments often fell short of expectations.

African leaders have welcomed the UAE’s involvement, particularly in energy transitions and critical infrastructure. However, concerns persist regarding the UAE’s track record on labor rights, environmental standards, and its support for hydrocarbons. Critics warn that these investments, while vital, may come with compromises on worker protections and ecological safeguards.

The UAE’s involvement in Africa spans multiple sectors. Dubai’s DP World manages ports in several African countries, and Abu Dhabi Ports has expanded operations in Guinea, Egypt, Angola, and the Republic of Congo. Emirati companies also hold significant stakes in agriculture, telecoms, and mining, including deals to sell carbon credits from forests in Zimbabwe, Liberia, Zambia, and Tanzania. However, the mining sector has faced challenges, with reports of illegally smuggled African gold making its way to Dubai.

Despite these concerns, African nations remain optimistic. Experts like Ahmed Aboudouh from Chatham House highlight the importance of these investments in plugging gaps left by Western nations. As the UAE diversifies its economy away from oil, its growing economic influence in Africa marks a significant shift in the continent’s investment landscape.