THE United Arab Emirates (UAE) has emerged as the largest backer of new business ventures in Africa, pledging $110bn between 2019 and 2023. Of this, $72bn targets renewable energy projects, according to data from FT Locations, the world’s most comprehensive and trusted provider of investment promotion and economic development data. These investments dwarf those from other nations, including the UK, France, and China, and highlight the UAE’s growing influence on the continent.
While African leaders have hailed the influx of Emirati investments as a lifeline for green energy transitions and infrastructure development, concerns over labour rights, environmental standards, and ethical practices have sparked debate.
UAE’s green ambitions
The UAE’s substantial commitments come at a time when Western governments have failed to deliver on climate financing promises. At COP29, wealthy nations pledged $300bn annually, far below the $1.3 trillion requested by developing countries.
Ahmed Aboudouh, an associate fellow at Chatham House, commented, “African countries are in dire need of this money for their energy transitions. Emirati investors are filling gaps left by the West, but they often bring lower attention to labour rights and environmental standards.”
The UAE’s investments include ambitious projects such as a $34bn green hydrogen initiative in Mauritania and a $2bn solar energy project in Zambia. However, some projects remain at early stages or face significant hurdles. For instance, Zambia’s solar project by Masdar, the UAE’s renewable energy company, has been delayed due to financial issues with state-owned energy firm ZESCO.
Expanding influence in key sectors
Beyond energy, UAE companies have strategically targeted sectors like logistics, agriculture, and mining. Abu Dhabi Ports manages key facilities in Egypt, Angola, and the Republic of Congo, while Dubai’s DP World operates six ports in Africa, with plans for further expansion.
Emirati firms have also made significant inroads into Africa’s mining industry. In 2023, International Resource Holdings, linked to Sheikh Tahnoon bin Zayed, secured a 51 percent stake in Zambia’s Mopani Copper Mines for $1.1bn. The move surprised many as IRH was not previously considered a frontrunner.
Additionally, Emirati ventures into carbon credits have raised eyebrows. Sheikh Ahmed Dalmook al-Maktoum’s deals cover vast forested areas across Zimbabwe, Liberia, Zambia, and Tanzania, sparking debates about the implications for local communities and ecosystems.
Troubling trends
Despite its transformative potential, the UAE’s involvement in Africa has not been without controversy. Activists point to the UAE’s history of labour rights violations and environmental negligence, raising fears these issues could extend to Africa.
Concerns over gold smuggling from Africa to Dubai have also grown. Swissaid, an NGO, identified a discrepancy of 2,569 tonnes between official gold exports from Africa and imports reported by Dubai between 2012 and 2022, worth over $115bn.
Ken Opalo, an associate professor at Georgetown University, warned, ‘African countries need all the financing they can get. However, there is also the opportunity for this attention to breed criminality – like we are seeing in the gold sector.’
Balancing opportunity and oversight
As the UAE shifts its economic focus from hydrocarbons to renewable energy and critical minerals, its engagement in Africa marks a turning point for the continent’s development trajectory. While investments could fast-track green transitions, governments must enforce robust labour and environmental regulations to safeguard long-term sustainability.
For African nations, navigating this delicate balance will determine whether Emirati investments serve as a steppingstone to inclusive growth or a pathway to exploitation and environmental degradation.
The UAE’s bold entry into Africa represents both a promise and a challenge. Its multibillion-dollar projects hold the potential to transform economies, but vigilance is needed to ensure that these ventures align with local development goals and global ethical standards. For Africa, the stakes have never been higher.
