The United Arab Emirates (UAE) has rapidly become Africa’s leading investor, committing over $110 billion to new business projects across the continent from 2019 to 2023, but also raising concerns that Emirati companies’ could compromise the rights of workers and environmental protections.
Between 2019 and 2023, the UAE has cemented its position as Africa’s top investor, as its companies announced projects worth $110 billion, $72 billion of which were in renewable energy, according to FT Locations, a data company owned by the Financial Times. The pledges from the UAE-based companies dwarfed those made by traditional investors from the United Kingdom, France or China, who pulled back from big-ticket infrastructure investment projects in the continent after many delivered disappointing returns. This has prompted the UAE investors to step in to address Africa’s critical funding gaps.
Although African leaders have welcomed the increased investments from the UAE, some activists and analysts have raised alarms over the Emirati companies’ poor record on labour rights for migrant workers and environmental practices. A darker side of Emirati involvement came to light, for example, with revelations by some NGOs that documented widespread gold smuggling, uncovering over 2,569 tonnes of gold worth $115.3 billion that were reportedly unaccounted for between 2012 and 2022.
“African countries are in dire need of this money [to] plug huge holes [where] the West failed” said Ahmed Aboudouh from the Chatham House think tank. But African leaders must navigate the fine line between welcoming Emirati investments and ensuring these projects “come in with [sufficient] attention to labor rights, to environmental standards,” Aboudouh added.