China’s Belt and Road Initiative (BRI) has been a major source of infrastructure funding in Africa since 2013. However, due to the economic impact of the Covid-19 pandemic, China has been forced to cut funding for many of its projects in Africa. This has created an opportunity for the United Arab Emirates (UAE) to step in as a new investor.
The UAE has been expanding its investment footprint in Africa, particularly in the ports sector. In 2021, the UAE celebrated its 50th anniversary and launched the Principles of the 50 document, which outlines the country’s development plans for the next 50 years. One key focus area is a renewed foreign policy that prioritizes the Emirate’s economy.
Emirati companies, such as Dubai-based DP World and Abu-Dhabi’s AD Ports, have significantly increased their presence in African ports over the past decade. DP World, for example, generated 10 percent of its revenue from Africa in 2021, with major port operations in seven African countries. This share has likely increased since DP World acquired South Africa’s Imperial Logistics, solidifying its position as a gateway to Africa.
AD Ports also made its mark in Africa by acquiring a controlling stake in Egypt’s Transmar Shipping and Transcargo International Company (TCI). This deal gave AD Ports a leading position in port operations in North Africa and the Red Sea region.
Currently, DP World and AD Ports operate 12 port facilities in Africa, with UAE’s port operations in Africa structured under port concessions averaging over 20 years. This makes UAE a top competitor to China for port concessions in Africa.
One notable difference in UAE’s approach to development in Africa is its focus on building its Emirati brand through port investments. UAE’s African policy seems to leverage ports as centers of influence. This strategy has been in place for years, with DP World managing the Maputo Port in Mozambique since 2006, long before China’s involvement in renovating the Beira Port in 2017.
Overall, UAE’s growing presence in African ports positions it as a significant player in the continent’s infrastructure development. With its long-term investment strategy and focus on ports, UAE is becoming a key rival to China in Africa.
Related Posts
Share it now
More Stories
US Coast Guard Students Demand $130 Million for Alleged Sexual Assault
Fuel Cell and CCS Study Aims to Reduce Maritime Emissions
BC Ferries Struggles with Aging Fleet After Propeller Loss of Iconic Vessel