The United Arab Emirates (UAE) has emerged as Africa’s largest investor, committing $110 billion to various projects between 2019 and 2023.
This surpasses investments by traditional investors like the UK, France, and China.
The UAE’s focus on renewable energy has seen $72 billion invested in sustainable energy solutions, aligning with Africa’s push for green energy.
As the UAE cements its position in Africa’s economic landscape, concerns around transparency and potential risks have emerged, raising questions about the future of this partnership.
Experts, like Ahmed Aboudouh from Chatham House, emphasise the importance of this investment for Africa’s energy transition.
Similarly, African leaders have welcomed this increased investment, particularly in the energy and infrastructure sectors.
UAE Companies Expand Across Africa
Several major UAE companies are driving this investment push, including Dubai’s DP World, which operates six African ports, and Abu Dhabi Ports, which has expanded into countries like Guinea, Egypt, and Angola.
International Resource Holdings, linked to Sheikh Tahnoon bin Zayed, has also secured a $1.1 billion deal for a 51% stake in Zambia’s Mopani Copper Mines.
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Challenges And Concerns Over Investment
As the UAE’s investment in Africa continues to grow, so do the challenges and concerns surrounding these projects.
While the benefits of investment are clear, the reality on the ground is more complex. In Zambia, for instance, financial troubles at state-owned ZESCO have stalled solar projects, highlighting the risks of relying on external investment.
Moreover, concerns about transparency have cast a shadow over some UAE-backed ventures.
A staggering $115.3 billion in unaccounted gold exports to Dubai between 2012 and 2022 has raised serious questions about the legality and transparency of the trade.
Experts, like Georgetown University’s Ken Opalo, warn that increased foreign attention on Africa can also breed criminality, citing the gold sector as a prime example.
Economic Partnership
The UAE’s ministry of economy has confirmed that the country is the fourth-largest global investor in Africa, with a total investment of $60 billion.
Over 21,000 African companies operate in the UAE, reinforcing the strong economic ties between the two regions.
As the UAE continues to expand its presence in Africa, it’s essential to address the challenges and concerns surrounding these investments to ensure a mutually beneficial partnership.
