Why the UAE Is Pouring Billions into Africa’s Energy Future

The United Arab Emirates has emerged as Africa’s largest single-country investor in recent years, committing more than USD 110 billion(approximately 14.2 trillion) across the continent between 2019 and 2023, with over USD 70 billion(approximately 9.03 trillion) directed to energy, green and renewable sectors.

This scale of capital, the highest by any country in that period, signals a long-term bet on Africa’s growth, anchored on the view that reliable energy access underpins industrialisation and economic diversification.

Momentum is also building around clean energy financing.

Under the Africa Green Investment Initiative, USD 4.5 billion(Ksh 580.5 billion) has been mobilised for more than 60 projects spanning solar, wind, geothermal, battery storage and green hydrogen.

Complementing this, Masdar’s USD 10 billion(Ksh 1.29 trillion) Africa programme and the Etihad 7 initiative aim to help expand electricity access to up to 100 million people by 2035, targeting structural power deficits and new generation capacity.

Against this backdrop of deepening economic ties, His Excellency Sheikh Shakhbout bin Nahyan Al Nahyan, Minister of State, participated in the 39th Ordinary Session of the African Union Summit in Addis Ababa, Federal Democratic Republic of Ethiopia.

The meeting brought together heads of state, government, and senior officials to discuss Africa’s priorities, including peace and security, economic integratio,n and sustainable development.

Strengthening UAE-Africa Partnerships

The UAE’s participation reflects the leadership’s focus on consolidating relations with African countries, strengthening partnerships based on trust and mutual respect, and supporting peace, stability and sustainable development across the continent.

The UAE has also affirmed support for the African Union’s Agenda 2063 and deeper cooperation with the African Union Commission and member states in trade and investment, renewable energy, food security, digital transformation and capacity building.

Speaking at the Summit, His Excellency Sheikh Shakhbout bin Nahyan Al Nahyan said:

“Our engagement with Africa is rooted in decades of trade, maritime links, and people-to-people connections across the Red Sea and Indian Ocean corridors. Today, that historic connectivity is reflected in a growing diplomatic footprint (19 embassies in Sub-Saharan Africa) with further expansion underway. At the same time, African diplomatic representation in the UAE continues to grow, reinforcing our country’s role as a hub for African trade, finance, and dialogue.”

On the sidelines of the summit, His Excellency met with a number of African leaders and officials to review political and economic developments and reaffirm continued cooperation.

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Expanding Trade and Logistics Networks

Trade architecture between the UAE and African partners is also expanding.

The UAE has concluded nine Comprehensive Economic Partnership Agreements with African countries, Nigeria, DRC, Sierra Leone, Gabon, Angola, Kenya, Congo-Brazzaville, Mauritius and the Central African Republic.

These agreements extend beyond tariff reductions to services, digital trade and investment protection, and are designed to complement the African Continental Free Trade Area by strengthening value chains and cross-border competitiveness.

Logistics investments are reinforcing these trade flows.

DP World is expanding operations across African ports, including a USD 1 billion(Ksh 129 billion) upgrade of Dar es Salaam Port in Tanzania, while AD Ports has broken ground on a new terminal in Luanda to significantly increase Angola’s container capacity. Long-term assets aligned with regional integration ambitions.

Also Read: Ruto Calls for Bigger AU Peace Fund to Tackle Africa’s Security Gaps

Development Cooperation and Future Priorities

Development cooperation remains a key pillar of engagement. Nearly 40% of the UAE’s total foreign assistance over the past decade, approximately USD 20.9 billion(Ksh 2.7 trillion), has been directed to African countries in the form of development, humanitarian and charitable support.

Looking ahead, water and climate resilience are rising on the joint agenda.

The UAE will co-host the 2026 UN Water Conference with Senegal from 2–4 December 2026, the first time two Global South countries will jointly lead this global process, underscoring a shared commitment to accelerating progress on water security and sanitation, a central development challenge across Africa.

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