By Chinelo Obogo
The United Arab Emirates (UAE) is the largest investor in new business projects in Africa, committing $110 billion to various ventures between 2019 and 2023.
According to the Middle East Monitor, a significant portion of this investment, amounting to $72 billion, is directed towards renewable energy projects. The Guardian, citing FT Locations, corroborates this figure, stating that UAE companies have pledged a total of $110 billion in projects across Africa, which surpasses that of other major investors such as the United Kingdom, France, and China, positioning the UAE as a leading economic partner for Africa.
The bulk of the UAE’s investment is in renewable and green energy projects and this $72 billion investment has been commended by African leaders who say energy and infrastructure are the two sectors which are very crucial for economic development and have benefited from this influx of capital.
The UAE’s investment in Africa includes Dubai’s DP World, a port operator which now manages six African ports, while Abu Dhabi Ports has also expanded its operations, establishing a presence in countries like Guinea, Egypt, and Angola.
Another investment is in Zambia, where International Resource Holdings secured a $1.1 billion deal for a 51 percent stake in Mopani Copper Mines.
The UAE’s Ministry of Economy has confirmed that the country is now the fourth-largest global investor in Africa. It also reveals that more than 21,000 African companies operate in the UAE and benefit from the country’s strategic location and infrastructure.
Experts have said that while the UAE’s investment in Africa has many benefits, including job creation and infrastructure development, one of the major challenges is ensuring that these investments do not lead to economic dependency but rather empower African nations to develop self-sustaining economies.