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Beyond Aid: How the UAE is Building Long-Term Partnerships Across Africa

Beyond Aid: How the UAE is Building Long-Term Partnerships Across Africa
Wednesday, 27 August 2025 07:11

With strategic investments in energy, technology, and infrastructure, the Emirates are anchoring their economic future to the continent’s development.

United Arab Emirates' State Minister for Foreign Trade Thani bin Ahmed Al Zeyoudi's visit to Chad on August 15-16, 2025, highlights the evolving economic diplomacy of the UAE in Africa. Once primarily a donor, the Gulf nation is now positioning itself as a long-term partner for the continent's transformation in infrastructure, digital technology, agriculture, and energy.

In N’Djamena, discussions focused on preparations for a roundtable in Abu Dhabi in November to mobilize a portion of the $30 billion needed to finance Chad’s national "Chad Connection 2030" plan. The government aims to achieve 8% annual economic growth within five years, driven by better access to electricity. Abu Dhabi has already supported Chad by facilitating an August 2024 agreement between the Chadian Ministry of Energy and Emirati company Global South Utilities (GSU) to construct a 50 MWp photovoltaic plant with a 15 MWh storage system and a 10 MW thermal unit.

Digital and Energy Partnerships Aligned with National Plans

Similar to its approach in Chad, the UAE is aligning with the priorities of African nations to become a structural, long-term partner rather than just a financier. In Côte d’Ivoire, the government aims to increase the share of renewables in its electricity mix from 30% in 2024 to 45% by 2030. In early August, Abidjan signed two agreements with Infinity Power, a joint venture between Emirati company Masdar and Egypt's Infinity Energy, to build and operate two photovoltaic plants with a combined capacity of 108 MWp by 2027. The UAE has already committed over $4.5 billion to green energy projects across the continent.

Emirati investments in the mining sector also frequently coincide with national ambitions. In Zambia, for example, International Resources Holding (IRH) acquired a 51% stake in Mopani Copper Mines in 2024, supporting Lusaka's goal of producing up to 3 million tons of copper by 2031. IRH plans to invest more than $1 billion to increase the company's copper output, which has been stagnant for several years.

Following its Zambian deal, IRH signed an agreement in September 2024 with the Public Investment Corporation, Africa’s largest asset manager. This partnership aims to support South Africa's energy plans, particularly those focused on integrating more renewables into an electricity grid historically dominated by fossil fuels.

A similar strategy is underway in Kenya, where an agreement was reached in May 2025 between the government, Microsoft, and Emirati firm G42 for an initial $1 billion investment. The project, which is part of Kenya's "Vision 2030" to build a "globally competitive knowledge-based society," involves constructing a geothermal data center in Olkaria to host a new Azure cloud region for East Africa. Beyond infrastructure, the initiative includes developing AI models in both Swahili and English and connectivity programs to extend internet access to 20 million Kenyans by the end of 2025.

Addressing Critical Continental Needs

According to the African Development Bank, the continent faces a significant infrastructure deficit, with an estimated annual funding gap of $68 billion to $108 billion. The UAE is also playing a key role in financing infrastructure to better connect people and facilitate the transport of goods. This is evident in Ethiopia, where the government is implementing a $2 billion strategy under its 2020-2030 ten-year plan to mitigate commercial logistical hurdles.

Dubai-based group DP World is committed to investing at least $1 billion to transform the Berbera corridor into a major logistics hub for the Horn of Africa. The route links landlocked Ethiopia to the Somali port of Berbera, providing a strategic alternative to the congested access through Djibouti. In addition to streamlining regional trade, the corridor is expected to support Ethiopian industrial development and strengthen East African economic integration.

DP World's pan-African strategy extends beyond the Horn of Africa. The company plans to invest nearly $3 billion over the next three to five years in new port and logistics infrastructure to support growing trade and rising demand for critical minerals. "The cost of logistics and the supply chain in Africa is very high compared to other global markets," Mohammed Akoojee, CEO of DP World for sub-Saharan Africa, said in June 2024. The group is already expanding in Dar es Salaam, Tanzania, and evaluating new investments in several strategic ports in South Africa and Kenya.

A Mutually Beneficial Partnership

For the UAE, these logistics projects are not isolated; they complement investments in energy and digital technology, aiming to anchor its industrial leaders within African economies. This is bolstered by instruments like bilateral investment protection agreements, which the UAE has increasingly signed with African countries. According to the United Nations Conference on Trade and Development, about 40 such agreements have been signed since the first one with Morocco in 1982, though roughly 20 have yet to be applied.

By focusing on energy, digital technology, logistics, and industry, the UAE is building a coherent offering to consolidate its influence on the continent. With Africa becoming a focal point of global competition among major powers, the continent's appeal is unprecedented. Its infrastructure, energy, and connectivity needs make it a decisive area for the reorganization of global value chains.

The UAE is positioning itself as a key partner in this dynamic, proposing projects aligned with African national priorities while strengthening the presence of its own industrial champions. For African governments, the challenge is to leverage this competition to their advantage, ensuring these partnerships genuinely help close infrastructure gaps, diversify energy mixes, and strengthen digital sovereignty.

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