In recent years, the United Arab Emirates has emerged as one of Africa’s most influential foreign investors, reshaping the continent’s economic landscape with unprecedented capital inflows and development partnerships. With over $110 billion invested between 2019 and 2023, the UAE is not just seeking business returns; it is building influence, securing vital resources, and aligning itself as a powerful development ally across the African continent.
The scope and scale of UAE’s involvement stretch across multiple sectors—energy, infrastructure, agriculture, and technology—making it a formidable player in Africa’s long-term growth story. For the UAE, this strategy serves multiple national interests: energy security, food supply assurance, new markets for technology and logistics, and geopolitical influence in an increasingly multipolar world.
Greening Africa: UAE’s Renewable Energy Push
One of the most striking features of the UAE’s presence in Africa is its aggressive investment in renewable energy. Through Masdar, the country’s flagship clean energy company, the UAE has launched major green energy initiatives across the continent. Masdar is currently developing solar and wind projects in countries such as Egypt, South Africa, and Morocco. The company is also spearheading a groundbreaking $34 billion green hydrogen project in Mauritania, aimed at transforming the West African nation into a global hub for sustainable hydrogen production.
In Ethiopia, Dubai-based AMEA Power is investing more than $620 million in the Aysha-1 wind project, expected to deliver 300 megawatts of clean energy upon completion. In South Africa, another AMEA venture—the Doornhoek Solar Power Station—will add 120 megawatts to the national grid, producing over 325 GWh annually. These projects not only contribute to Africa’s renewable goals but also reinforce the UAE’s image as a forward-thinking partner.
Still Fueling Growth: Investments in Oil and Gas
However, the UAE’s energy investments are not limited to renewables. The nation’s oil giant, Abu Dhabi National Oil Company (ADNOC), is making strategic acquisitions in African oil and gas. ADNOC has secured a 10% stake in the Rovuma Basin in Mozambique, one of the world’s largest natural gas fields. It is also in collaboration with British Petroleum to develop gas fields in Egypt. This two-pronged strategy of supporting both green and traditional energy projects allows the UAE to hedge its bets and ensure long-term energy access while transitioning toward sustainability.
Strengthening Connectivity: Infrastructure Development
In parallel with its energy agenda, the UAE is heavily invested in enhancing Africa’s infrastructure. Ports, transportation corridors, and logistics hubs have become focal points of Emirati attention. DP World, one of the world’s largest port operators, now manages key terminals in Senegal, Somaliland, and Angola. These ports not only boost regional trade capabilities but also connect African economies to markets in Asia and the Middle East, creating a win-win situation for all parties involved.
Abu Dhabi Ports has joined the effort, offering logistics and trade route development that improves regional supply chains. One of the major projects supported by UAE capital is the $3 billion Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor Project in Kenya. This initiative aims to open up landlocked nations to maritime trade routes, thus enhancing economic integration and regional cohesion.
UAE : Agricultural Investments for Food Security
While energy and infrastructure dominate the headlines, agriculture represents another cornerstone of the UAE’s African agenda. Facing arid land and limited water resources at home, the UAE has prioritized African farmland as a source of food security. Companies such as Al Dahra Agriculture have acquired vast tracts of fertile land in Ethiopia, Sudan, and Tanzania. These farms are used to grow wheat, rice, vegetables, and fruits, which are then exported back to the UAE to supplement local consumption. This model of offshore agriculture helps the UAE mitigate food supply risks while contributing to employment and rural development in Africa.
Digital Ambitions: Investing in Africa’s Tech Future
Technology and digital innovation form the next frontier in this growing partnership. Africa’s rapidly expanding digital economy has attracted interest from UAE-based venture capital firms looking to support startups in fintech, e-commerce, and mobile banking. In Nigeria, for instance, Chimera Capital recently led a $50 million funding round for a fintech startup aiming to deliver financial services to unbanked communities. Similar investments are being made in Ghana, Kenya, and Egypt, signaling a long-term strategy to build technological ecosystems that can create mutually beneficial growth.
Strategic Outcomes: What the UAE Stands to Gain
This flurry of investment activity serves multiple purposes for the UAE. Economically, it offers diversification and growth opportunities beyond traditional oil revenues. Politically, it deepens diplomatic ties with African governments, paving the way for stronger bilateral relations and regional influence. Strategically, it positions the UAE as a soft power hub that can bridge Africa with Asia and the broader Arab world.
Addressing Challenges: Concerns and Controversies
Yet, such rapid expansion is not without challenges. Critics have raised concerns over land acquisitions for agriculture, particularly around issues of displacement, fair compensation, and environmental degradation. Labor rights, especially in infrastructure and energy projects, have also come under scrutiny. Additionally, some worry that Africa’s reliance on foreign capital could result in economic dependencies that limit local autonomy in the long term.
To counter these concerns, Emirati firms are increasingly partnering with local stakeholders, creating joint ventures, and involving African governments in project development and oversight. Sustainable and inclusive development practices are being prioritized, albeit gradually, to ensure that investments deliver long-term value without sacrificing social or environmental ethics.
A New Era of Cooperation
As the UAE continues to deepen its presence across Africa, its role is evolving from that of a foreign investor to a development partner. With projects that span deserts, ports, farms, and cities, the UAE is not just pouring money into Africa—it is helping to reshape its future. If managed responsibly, this relationship could mark the beginning of a new era of Afro-Arab cooperation, one that transcends transactional ties and focuses on sustainable, shared prosperity.
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