UAE becomes Africa’s biggest investor, commits $110 billion to new projects

UAE becomes Africa's  biggest investor,  commits $110  billion to new projects.

The United Arab Emirates (UAE) has become the  biggest investor in new business projects in Africa, committing $110 billion to various ventures between 2019 and  2023.
According to  the Middle East Monitor, this includes $72 billion  in renewable energy, surpassing investments  from the UK,  France and  China.
The Guardian, citing FT  Locations (a provider of investment promotion and economic development data and digital solutions for the foreign and domestic investment  sector), UAE companies have pledged $110 billion in projects across Africa,  surpassing traditional investors such as the UK,  France and  China. .
Most of the investment has  been focused on renewable energy, with $72 billion  dedicated to green energy projects. African leaders have welcomed  the increased investment,  particularly in energy and  infrastructure. Ahmed Aboudouh,  a research fellow at Chatham House,  said:
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"African countries  desperately need this money [for] their energy  transition."
However, he also noted that UAE investors often pay less attention to  labor rights and environmental standards.
Major UAE companies expand  into Africa
Several major Emirati companies are  at the  heart of the UAE's investment strategy in Africa.  Dubai's DP World operates six African  ports and Abu Dhabi Ports has expanded  into countries including Guinea,  Egypt and  Angola.
In Zambia, International Resource Holdings, a company linked to Sheikh Tahnoon bin Zayed, secured a $1.1 billion deal for a  51% stake in  the Mopani  copper mines. The investments reflect the  UAE's efforts to diversify  away from oil and gas and increase its presence in  infrastructure African. Challenges and concerns  related to investment  projects
Reports indicate that not all  UAE investments in Africa have  gone well. In Zambia, financial  difficulties at state-owned ZESCO have delayed solar  projects.
There have  also been concerns about the transparency of some UAE-backed  companies. According to  the Middle East Monitor, a  Swiss report  found that $115.3 billion in  unregistered gold exports to Dubai  took place between 2012 and 2022, raising questions about the legality and transparency of the  trade.
Georgetown University professor Ken  Opalo has warned  of the  dangers of increased foreign attention  to Africa,  saying:
"There is also the  possibility that this attention  will lead to  crime, as we are seeing in the gold  sector."
The UAE's economic role in  Africa
Reports indicate that the  UAE Ministry of  Economy recently confirmed that the UAE is the  world's fourth largest investor in Africa, with a total investment of $60  billion. The ministry also noted that more than 21,000 African companies operate in the UAE, reinforcing the  close economic ties between the two  regions.
While the UAE's financial  inclusion offers significant benefits  to Africa, it also presents challenges that must be addressed as these partnerships continue to grow.

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