The United Arab Emirates (UAE) has officially become Africa’s largest foreign investor, Biggest Investor pouring over $110 billion into the continent between 2019 and 2023. This financial surge has sparked optimism across Africa, as many countries welcome the promise of new jobs, modern infrastructure, and clean energy.
However, behind the celebration lies growing unease. Analysts, rights groups, and some local communities are raising serious questions about labor conditions, environmental impact, and the UAE’s political motives. Is this truly a win-win partnership for Africa, or is the continent stepping into a new form of dependency?
Billions Flow into Africa
In just five years, the UAE has outpaced global powers like China, the United States, France, and the United Kingdom in African investments. Data compiled by FT Locations, a research firm associated with the Financial Times, confirms that Emirati firms committed over $110 billion to projects across Africa. Around $72 billion of that was dedicated specifically to renewable energy initiatives.
Major Emirati companies are involved in key sectors such as mining, agriculture, telecommunications, and infrastructure. Africa is becoming a core destination for UAE sovereign wealth funds and private investors alike. Many of these projects are tied to leading figures in the Emirati royal family, including Sheikh Tahnoon bin Zayed, a prominent security adviser and business magnate.
One major example is the purchase of a controlling 51% stake in Mopani Copper Mines in Zambia. The deal, brokered by International Resources Holdings (IRH), underscores the UAE’s deepening interest in Africa’s mineral wealth—especially as the world shifts toward cleaner technologies that depend heavily on metals like copper, cobalt, and lithium.
Energy Transition or Environmental Exploitation?
Renewable energy is a centerpiece of the UAE’s investment drive. From wind farms in Egypt to solar grids in Kenya, Emirati firms are positioning themselves as green champions helping Africa combat energy poverty and climate change.
But critics argue that these investments often come with little transparency or public oversight. There are growing fears that “greenwashing”—marketing a project as environmentally friendly without true sustainability—may be taking place.
The UAE is also involved in controversial carbon credit deals. Emirati companies have acquired rights to sell carbon credits from vast forest areas in Zimbabwe, Liberia, Tanzania, and Zambia. These agreements, covering millions of hectares, were signed quietly and raised eyebrows among civil society groups and environmentalists. Many argue that these deals threaten local land rights and give too much control to foreign companies.
Labor Rights and Human Dignity
Beyond environmental issues, human rights activists warn that the UAE’s business model does not always prioritize workers’ rights. The country has been criticized for its treatment of migrant laborers at home—many of whom come from Africa and South Asia—and there are concerns that similar labor conditions may be mirrored in its African ventures.
Ahmed Aboudouh, an associate fellow at Chatham House, notes that while African countries badly need investment, many Emirati firms enter markets “with less attention to labor rights and environmental standards.”
There is limited public information about the working conditions on the ground in Emirati-funded projects. Activists fear that poor regulation, weak enforcement of labor laws, and the pursuit of fast profits could harm African workers, especially in rural and remote areas.
Geopolitical Ambitions in Disguise?
The UAE’s rising influence in Africa goes far beyond business. The Gulf state has become a key political player in African affairs, with a growing military and diplomatic presence in conflict-prone regions.
In countries like Libya and Sudan, the UAE has faced allegations of backing armed groups involved in violent conflicts. In Sudan, specifically, the UAE is accused of supporting the Rapid Support Forces (RSF), a powerful militia that has played a role in the country’s ongoing civil war. The RSF has been linked to serious human rights abuses, including mass killings and ethnic violence.
There are also concerns that the UAE’s influence could destabilize fragile governments or increase corruption by striking secretive deals with elites who lack democratic accountability.
Illegal Gold Trade and Financial Crime
The UAE’s central role in the African gold trade has also raised red flags. Dubai, the UAE’s financial hub, is a major destination for African gold—much of which is mined and exported illegally.
A recent study by the NGO Swissaid found that over 435 tonnes of gold were smuggled out of Africa in 2022 alone, representing a loss of roughly $31 billion. Astonishingly, 93% of that gold ended up in the UAE.
This illegal trade is not just a matter of lost tax revenue. Smuggled gold often fuels armed conflicts, destroys local environments, and supports criminal networks. The lack of transparency in the UAE’s gold market, combined with its role as an investment powerhouse in Africa, creates a troubling picture of potential double standards.
A New Era or Old Patterns?
The question now facing African leaders and global observers is whether the UAE’s investment boom marks the beginning of a new, equal partnership—or the continuation of exploitative practices under a modern facade.
On one hand, Africa stands to benefit enormously from clean energy projects, infrastructure development, and job creation. Many African nations are desperate for foreign capital to boost their economies and complete their own green transitions.
On the other hand, unchecked foreign influence, weak oversight, and human rights concerns could undermine long-term development. There is a real risk that African resources and labor are once again being used for foreign gain, with little benefit reaching ordinary people.
What Comes Next?
To ensure a fair and sustainable future, African governments must strengthen regulatory frameworks, demand transparency from foreign investors, and put the rights of their citizens first. Civil society and international watchdogs should continue to monitor Emirati investments and hold both African and UAE officials accountable.
The UAE’s rapid rise as Africa’s top investor is one of the most significant geopolitical shifts of the decade. Whether it leads to shared prosperity or renewed inequality will depend on decisions made today.
Africa deserves investment. But it also deserves dignity, fairness, and respect. Anything less risks repeating the mistakes of history—this time, wearing the badge of progress.
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