The United Arab Emirates (UAE) is increasingly positioning itself as a major financial and strategic partner in Africa’s mining sector, providing capital to governments seeking greater control over valuable natural resources. The latest example comes from Botswana, which is exploring potential support from the UAE to help finance a larger stake in De Beers following Anglo American’s decision to sell its 85 percent ownership in the diamond giant. Botswana, which already owns 15 percent of De Beers, aims to increase its influence over diamond production, pricing, and marketing.
Botswana’s interest in securing additional ownership comes at a challenging time for its economy. Diamonds remain the country’s most important export, accounting for around 80 percent of export earnings and a significant share of national income. However, weaker global demand, declining diamond prices, and growing competition from synthetic diamonds have put pressure on public finances, prompting the government to seek strategic investment partners. Alongside discussions with Oman, Angola, and Namibia, the UAE has emerged as one of the most significant potential backers.
The UAE’s involvement in African mining extends well beyond Botswana. In the Democratic Republic of Congo, Emirati-backed initiatives have played a role in formalizing artisanal gold exports through partnerships designed to reduce smuggling and increase official trade. In Zambia, UAE-linked International Resources Holding acquired a controlling stake in Mopani Copper Mines, providing capital at a critical time for the country’s efforts to expand copper production and strengthen the mining sector.
These investments form part of a broader UAE strategy aimed at securing access to critical minerals needed for future economic growth and the global energy transition. Minerals such as copper, cobalt, lithium, and graphite are essential components of batteries, renewable energy technologies, and modern industrial supply chains. By investing in resource-rich African nations, the UAE is building long-term exposure to these strategic commodities while diversifying its economy beyond oil and gas.
The strategy also supports the UAE’s ambitions to strengthen its position as a global trading and logistics hub. Investments in African ports, transportation infrastructure, and mineral supply chains help connect resource-producing regions with international markets. This approach enhances the UAE’s influence across Africa while positioning it as a key player in the growing competition among global powers seeking access to critical resources.
Despite the economic opportunities created by Gulf investment, concerns remain regarding transparency and governance. Critics have highlighted the role of the UAE as a major destination for African gold, including concerns about illicit gold flows that may deprive African governments of significant tax revenues. Questions have also been raised about the transparency of certain mining agreements involving Emirati companies, with some contracts remaining undisclosed to the public.
For African governments, UAE capital offers an alternative source of financing at a time when global competition for resources is intensifying. However, experts argue that maximizing the benefits of these partnerships will require stronger transparency standards, effective oversight, improved mineral traceability systems, and commitments to local value addition and mineral processing. The long-term success of these investments will depend on ensuring that resource development contributes not only to foreign investment returns but also to sustainable economic growth within African countries.
