The global spotlight shone brightly on Africa as it hosted its first-ever G20 Summit in South Africa, a landmark event that underscored the continent's rising geopolitical and economic stature. The summit, held amidst global uncertainties, became a powerful platform for forging new alliances, with Gulf nations, particularly the United Arab Emirates (UAE), emerging as pivotal partners.
Gulf Nations Step Up as Key Investors
The absence of the United States did not dampen the summit's spirit; instead, it opened the floor for other global players. Foreign investors, especially from the Gulf Cooperation Council (GCC), actively competed for multi-sector opportunities across Africa. This trend is part of their broader economic diversification strategies and marks a significant shift in global investment flows towards the continent.
Between 2013 and 2023, GCC investment into Africa nearly quadrupled, a clear signal of growing confidence in African markets. The UAE, already Africa's largest investor from the region, solidified its role further. A senior UAE minister, speaking on the summit's sidelines, emphasised the transformative potential of their investments in critical sectors like education and healthcare, resonating deeply with African delegates.
The $1 Billion AI Game-Changer
The most significant announcement came from the UAE, which pledged a $1 billion initiative to expand its artificial intelligence (AI) expertise across Africa. This strategic move is designed to help African nations meet their national development priorities and ensure the continent is not left behind in the global tech race.
AI is a prime example of an underinvested sector in Africa with monumental potential. The sector alone is projected to contribute over $2.9 trillion to Africa's economy by 2030. The UAE's commitment is timely, offering the continent access to a global leader in both AI and renewable energy. This partnership aims to leverage Africa's young, tech-savvy population to drive modernization and create sustainable, long-term opportunities.
Building on a Foundation of Green Investment
The UAE's latest AI pledge builds upon its already substantial and growing commitments to Africa's development. The Gulf nation has demonstrated its capability as a reliable bridge-builder, notably through its leadership of the COP28 Summit in Dubai. Its climate expertise is translating into direct action in Africa.
Of the more than $110 billion Abu Dhabi invested in Africa between 2019 and 2023, over $70 billion was allocated to green projects. These initiatives are creating millions of jobs and accelerating a swift energy transition, which in turn fuels broader economic growth across the continent.
While challenges like poverty and governance remain—Sub-Saharan Africa is home to 67% of the world's extreme poverty—the summit highlighted a path forward. Coordinated global responses, aligned with national visions and backed by strategic foreign investment, are crucial. The African Union's full membership in the G20 provides a core forum to explore these new collaboration streams and enhance South-South ties.
As traditional partners from Europe and Asia continue their engagement, they will now find themselves competing with the rapidly growing influence of Gulf nations. Africa's first G20 Summit has unequivocally shown that the continent is big business in 2025, ready to work with those who can advance its agenda and serve as long-term allies in its transformative journey.
