The United Arab Emirates has become the largest backer of new business projects in Africa, raising hopes of a rush of much-needed money for green energy, but also concerns that the investments could compromise the rights of workers and environmental protections.
Between 2019 and 2023, Emirati companies announced $110bn (£88bn) of projects, $72bn of them in renewable energy, according to FT Locations, a data company owned by the Financial Times.
The pledges were more than double the value of those made by companies from the UK, France or China, which pulled back from big-ticket infrastructure investment projects in Africa after many failed to deliver expected returns.
African leaders were also disappointed with climate finance pledges by western governments. At the Cop29 climate conference, for example, wealthy countries promised $300bn annually, whereas developing countries had demanded $1.3 tn.
Some pledges have hit hurdles. In January 2023, the renewable energy company Masdar announced $2bn for 2GW of solar power in Zambia.
Dubai’s port and airline companies were early movers to Africa. Dubai’s Emirates airline has flights to 20 African countries. DP World has been present in the region since 2006. It manages six ports, with plans to build two more.
UAE companies also have investments in agriculture and telecoms. Emirati investments have also shaken up the mining industry.
No comments:
Post a Comment