The United Arab Emirates is fast emerging as one of the biggest investors in Africa. In the past decade—from 2012 to 2022—the UAE has invested approximately US$60 billion in African countries. This paper discusses how the UAE is planning to grow its investments in Africa and underlines some important areas such as building infrastructure and exploiting natural resources.
UAE’s Investment Strategy in Africa
The UAE is currently chalking out a plan that will help it increase its investment in the African continent. Essentially, the plan will be able to enable the UAE establish improved economic relations with African countries. In doing so, the UAE would have done its part toward contributing to the economic growth of itself and the African region.
How Much is the UAE Investing?
As earlier indicated, the UAE had spent USD 60 billion in Africa within a decade. Well, that is not all; early in 2023, the UAE pledged an additional USD 4.5 billion. The new money will be specifically used for clean energy projects across Africa.
Where is this Money Going?
UAE investments in Africa fall across diverse sectors, and some of the key ones, to mention but a few, are as follows:
Infrastructure: That means constructing infrastructure like roads, bridges, and even airports. For instance, the UAE played an important role in upgrading the main airport of Ethiopia.
Energy: UAE is investing in Power plants, electricity projects, and the likes.
Transport: The UAE is involved in upgrading ports to facilitate easier shipping.
4. Interest in Natural Resources: The UAE is targeting oil, gas, and mineral resources in Africa.
Priority Investment Areas
1. Improved Infrastructure
The UAE is very active in helping build important structures across Africa. They are funding projects like new roads, bridges, and airports. These improvements help people and goods move around more easily, which is good for trade and communication.
2. Clean Energy Projects
The knowledge of the UAE about renewable sources of energy includes solar and wind power. They use this knowledge to help the African state create other means of producing energy that are much more sustainable. This would give power availability and at the same time protect the environment.
3. Invest in Agriculture
The UAE invests in African farms and food productions, which enable most Africans to get foods that are enough for them and the UAE as well, and also opens the door to new avenues of trade between African countries and UAE.
Benefits to Africa and the UAE
By investing in the places, the following happens in African economies:
It provides employment to the local citizen.
New technology is introduced in African countries.
African workers are being trained in new skills
scholarships for African students to come and study in UAE
The UAE also happens to gain in the form of newer business avenues, assured supplies of food, and getting friendly in the different African nations.
A Partnership Like No Other
The UAE seeks to partner with Africa on their terms. Unlike other nations that look forward to imposing their way of ruling on African countries, the UAE looks forward to partnership in projects that work mutually for both nations.
Looking Forward
As the UAE ups its investments in the continent, there is so much expectation from both sides in as far as the realization of economic growth and cooperation is concerned. Diversification of the UAE economy beyond hydrocarbons and enabling growth in Africa are the causes of the investments. The idea is to open a relationship where both the UAE and African countries can grow and succeed together.
Conclusion
It is important to mention that the $60 billion invested by the UAE into Africa underlines its keen interest in making strong ties with the continent. The UAE has focused on paying attention to important aspects related to infrastructure, clean energy, and farming with the aim of creating a promising future not just for itself but also for its African partners. It will be interesting how this relationship shapes both regional economies with time.
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