The United Arab Emirates (UAE) has become Africa’s largest investor, committing a whopping $110 billion to new projects between 2019 and 2023. This massive investment has been directed towards various sectors, with a significant focus on renewable energy, totaling $72 billion.
The UAE’s investment strategy in Africa is multifaceted, with several major Emirati companies expanding their presence on the continent. For instance:
- Renewable Energy: The UAE has pledged $4.5 billion to finance Africa’s climate projects, with a focus on clean energy.
- Ports and Logistics: Dubai’s DP World operates six African ports, while Abu Dhabi Ports has expanded to Guinea, Egypt, Angola, and the Republic of Congo.Mining: International Resource Holdings acquired a 51% st
- Agriculture and Carbon Credits: The UAE has invested in sustainable agriculture and climate-focused projects, including carbon credits from forests in Zimbabwe, Liberia, Zambia, and Tanzania.
While the UAE’s investments offer significant benefits for Africa, concerns have been raised about labor rights, environmental standards, and governance challenges. African leaders must balance the need for foreign investment with the importance of ensuring that these projects align with local interests, ethical standards, and long-term sustainability.
Source: Nairametrics
