Sensemaker Why is the UAE funding AI projects in Africa?
Dec 4, 2025
Hannah Schuller, a researcher for The Observer and expert in AI investments, dives into the UAE's ambitious £59.4bn venture into Africa's AI sector. She discusses the strategic £2.5bn commitments for infrastructure and 20 recent agreements, linking these moves to the UAE’s goals of economic diversification and geopolitical influence. While African governments welcome the funding, Hannah expresses skepticism about local benefits, warns of potential investment bubbles, and highlights the risks of failed projects reminiscent of past global initiatives.
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UAE Targeting Africa For AI Power
- The UAE is positioning itself as a major AI player by investing heavily in Africa rather than competing directly with the US or China.
- The Observer found £2.5bn pledged for data centres, cloud infrastructure, learning hubs and innovation centres across the continent.
Rapid Deal-Making Since ChatGPT
- Since ChatGPT launched, the UAE signed 20 AI-related agreements with African governments and pledged billion-pound projects like Ghana's AI hub.
- Projects include data centres, national cloud platforms and innovation hubs led by UAE-affiliated companies.
Diversification Drives Geopolitical Reach
- The UAE's AI push furthers its Vision 2021 goal to diversify from oil into a knowledge-based economy.
- Building AI capacity gives the UAE geopolitical stature and access to global tech conversations.