Qatar commits billions to Africa's energy future

From the newsletter

Qatar, one of the world's largest energy exporters, is shifting its strategy from being a fossil fuel exporter to a key player in Africa's renewable energy sector. Its leadership has taken a direct role and made visits that secured billion-dollar investment deals across six African countries. It joins other Gulf nations in competing to bridge Africa’s vast infrastructure gap.

• Al Mansour Holdings, one of Qatar’s leading conglomerates, has announced plans to invest $103 billion (!!) across six African countries, with a significant share directed toward energy projects. 

• While not all the funding will go directly into energy projects, it could boost critical adjacent sectors such as mining, telecommunications, agriculture and tourism, in turn creating more energy demand.

More details

• The Democratic Republic of Congo leads with $21 billion in Gulf commitments, followed by Mozambique with $20 billion. Zambia and Zimbabwe each secured $19 billion, while Botswana and Burundi received the smallest allocations at $12 billion each. Sheikh Jassim bin Mansour bin Jabor Al Thani (pictured) led in securing the deals.

• Gulf nations have a long history of investing in Africa, but their early focus was mainly on agriculture, food security, and trade. These investments were driven by the need to safeguard food supply chains for their own populations. Over the past decade, the UAE has led the way with $59.4 billion invested between 2012 and 2022, followed by Saudi Arabia with $25.6 billion and Qatar with $7.2 billion. Today, the UAE ranks among the top five global investors in Africa, trailing only China, Europe, and the United States.

• This wave of investment is powered by colossal Sovereign Wealth Funds (SWFs), which collectively manage around $5 trillion in assets. With this financial muscle, Gulf nations are now moving into Africa’s energy sector. As the continent’s energy deficit grows more urgent, Gulf capital is flowing into both fossil fuels and renewables. Oil and gas remain attractive, especially in resource-rich countries like Mozambique, but clean energy is rising rapidly as a strategic priority.

• Between 2022 and 2023, Gulf Cooperation Council states invested $113 billion in Africa, surpassing the $102 billion they committed over the entire previous decade. These flows are reshaping Africa’s investment map. In 2024, foreign direct investment inflows to Africa jumped 75%, compared to a global rise of just 4%, with Gulf capital playing a major role. Africa is no longer viewed simply as a supplier of raw resources but as a long-term partner in energy and infrastructure growth.

• Qatar illustrates this pivot clearly. Previously, it invested heavily in sectors such as aviation, with Qatar Airways acquiring major stakes in Rwanda’s national carrier and Bugesera International Airport. Today, much of its new money is flowing into energy. Through the Qatar Investment Authority, it partnered with Enel Green Power in 2021 to build renewable plants in sub-Saharan Africa. In South Africa, their joint wind projects will supply 330 MW of power to Sasol by 2026.

• Other Gulf states are pushing ahead with equally ambitious energy projects. The UAE’s Masdar is developing a 10 GW green hydrogen project in Mauritania and a 120 MW solar park in Tunisia. Meanwhile, Saudi Arabia’s ACWA Power is building a $2.3 billion wind farm in Egypt, which will become the country’s largest once completed.

Our take

• The Gulf nations' entry is set to intensify competition in Africa's renewable energy sector, which has long been dominated by China. This is a boon for African countries, which will be able to enjoy competitive offers from different players.

• But with such big investment flows, it raises questions about governance, transparency, and accountability. To maximise benefits, African states will need to build stronger regulatory frameworks to avoid debt traps or resource dependency.

• With investments spanning multiple countries, there will be growing momentum to expand cross-border transmission links. This could help realise the long-discussed vision of a more interconnected African power grid.