Green Investment in Africa: New Frontiers for Gulf Financing

This research paper examines the increasing flow of foreign direct investment from Gulf Cooperation Council (GCC) countries—specifically the UAE, Saudi Arabia, and Qatar—into Africa. It details how these states are leveraging Africa's renewable energy potential and mineral resources to diversify their own hydrocarbon-dependent economies and secure food supply chains, while providing Africa with an alternative to Western and Chinese financing to address its infrastructure gap.

• Foreign direct investment in Africa saw a significant increase in 2024, reaching $97 billion, which represents a 75% increase compared to 2023.
• GCC countries have invested over $100 billion in Africa between 2012 and 2022. The UAE's contributions were particularly substantial, with approximately $110 billion in new commitments from 2019 to 2023, of which $72 billion was dedicated to renewable energy.
• GCC investment is driven by a need for food security due to harsh domestic climates and a high reliance on imports; GCC countries import about 85% of their food, spending roughly $73 billion on these imports in 2022.
• The UAE has implemented several large-scale energy and technology projects in Africa, including a $4.5 billion pledge for clean energy at COP28, a $1 billion pledge for AI infrastructure at the 2025 G20 summit, and a $34 billion green hydrogen project in Mauritania.
• Saudi Arabia has focused on infrastructure and renewable energy, pledging approximately $41 billion for sub-Saharan African infrastructure over a decade (as of October 2024) and investing roughly $7 billion in renewables by early 2025, primarily through ACWA Power.
• Qatar's Al Mansour Holdings announced plans in August 2025 to invest approximately $103 billion across six African nations: Botswana, Burundi, the Democratic Republic of Congo, Mozambique, Zambia, and Zimbabwe.
• Gulf financing helps address Africa's annual infrastructure gap, which is estimated to require $130–170 billion annually, especially as traditional partners like China, the US, and Europe reduce large-scale funding.
• There is a risk that Gulf investments prioritize large-scale, export-oriented projects over community-focused needs, with climate mitigation receiving more funding than climate adaptation sectors like water and sanitation.

APA

South African Institute of International Affairs (2025). Green Investment in Africa: New Frontiers for Gulf Financing. https://saiia.org.za/research/gulf-financing-is-changing-africas-green-economic-growth-outlook-but-who-benefits/

Chicago

South African Institute of International Affairs. Green Investment in Africa: New Frontiers for Gulf Financing. 2025. https://saiia.org.za/research/gulf-financing-is-changing-africas-green-economic-growth-outlook-but-who-benefits/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Green Investment in Africa: New Frontiers for Gulf Financing |date=5 December 2025 |url=https://saiia.org.za/research/gulf-financing-is-changing-africas-green-economic-growth-outlook-but-who-benefits/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2025green, author = {{South African Institute of International Affairs}}, title = {{Green Investment in Africa: New Frontiers for Gulf Financing}}, institution = {South African Institute of International Affairs}, year = {2025}, month = dec, url = {https://saiia.org.za/research/gulf-financing-is-changing-africas-green-economic-growth-outlook-but-who-benefits/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }