UAE to invest US $4.5bn in Africa’s clean energy

The United Arab Emirates (UAE) has announced plans to inject US $4.5bn into Africa’s clean energy potential.

COP28 President-Designate H.E. Dr. Sultan Al Jaber made the announcement during the African Climate Summit happening in Nairobi Kenya. He said the move aims to address the energy needs of the African continent and combat climate change.

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Energy access challenge

According to Dr. Sultan Al Jaber, Sub-Saharan Africa faces a significant energy access challenge, with 600 million people living without electricity. Investment in African renewables currently represents only 2% of the global total, falling far short of the US $60 billion per year needed by the continent by 2030.

“The initiative will prioritise investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks and a master plan for developing grid infrastructure that integrates supply and demand. It is part of the broader Etihad 7 platform by the UAE, which aims to provide clean electricity to 100 million people across Africa by 2035,” he said.

Several notable organizations from the UAE are contributing to this initiative. These include the Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power. Additionally, Africa50, an investment platform established by African governments and the African Development Bank (AfDB), is also collaborating with the UAE finance initiative.