Green Investment in Africa: New Frontiers for Gulf Financing

The research paper examines the increasing role of GCC countries—primarily the UAE, Saudi Arabia, and Qatar—as major investors in Africa's energy transition and infrastructure. It identifies food security and economic diversification away from hydrocarbons as the primary drivers for Gulf states. While highlighting significant projects in renewable energy and mining, the paper warns that the current focus on large-scale, export-oriented developments may sideline local community needs and climate adaptation priorities unless African policymakers actively steer investments toward local beneficiation and regional integration.

• GCC investment in Africa exceeded $100 billion between 2012 and 2022, with the UAE alone committing approximately $110 billion from 2019 to 2023, of which $72 billion was for renewable energy.
• Gulf states are driven to invest in Africa by an 'existential need' to secure food value chains, as GCC countries import about 85% of their food and spent roughly $73 billion on imports in 2022.
• The UAE has implemented several major energy projects, including a $34 billion green hydrogen project in Mauritania, the Noor Midelt solar complex in Morocco, and the acquisition of Lekela Power, making Infinity Power the continent's largest renewable energy company.
• Saudi Arabia has invested approximately $7 billion in Africa's renewable energy sector as of early 2025, primarily through ACWA Power, which is leading Project DAO and the Redstone concentrated solar power plant in South Africa.
• Qatar's Al Mansour Holdings announced plans in August 2025 to invest approximately $103 billion across six countries: Botswana, Burundi, Democratic Republic of Congo, Mozambique, Zambia, and Zimbabwe.
• Gulf financing may help close Africa's infrastructure gap, which requires annual investments of $130–170 billion, especially as traditional partners like China, the US, and Europe reduce large-scale funding.
• Current GCC investments prioritize large-scale mitigation and export-oriented projects over community-focused adaptation needs, such as water and sanitation, risking the entrenchment of local inequalities.

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} }