The UAE is strengthening its economic relationship with Angola and other African nations by committing to substantial investments in key areas, including energy, technology and maritime logistics. Meanwhile, Angola presents the UAE with opportunities to enhance its food security, gain access to vital minerals, tap into a burgeoning consumer market and expand its influence across the continent.
Reflecting Angola’s significant investment potential, the UAE has been deepening its economic ties with Angola since 2021. With over 63 Angolan companies operating in the UAE – spanning various sectors including automotive, electronics, gold and diamond trading – economic relations between the two countries are poised to serve economic growth and development in the region while promising significant investments in critical sectors.
Strategic Significance
Emirati public institution the Abu Dhabi Chamber of Commerce and Industry (ADCCI) and investment organization the Angola-UAE Chamber of Commerce and Industry signed a cooperation agreement and memorandum of understanding (MoU) in June to foster investment opportunities between the two countries. The agreements aim to enhance bilateral economic relations while generating new opportunities for investors, businesses and entrepreneurs.
Meanwhile, poised to become a global player in the supply of critical minerals, Angola holds vast unexplored areas containing large reserves of copper, cobalt, manganese and lithium, which are essential for the UAE’s ambitions in technology and renewable energy. In May this, Abu Dhabi-based conglomerate International Holding Company entered a joint venture agreement to mine iron ore in Angola, underscoring the country’s prospectivity as a global minerals supplier.
Energy and Electrification
In December 2023, Emirati renewable energy company Masdar signed an agreement with Angola’s Ministry of Energy and Water to develop a 150 MW solar photovoltaic (PV) plant in southern Angola. The project is aligned with Masdar’s pledge to invest $2 billion in equity and $8 billion in project finance towards developing 10 GW of renewable energy projects across Africa by 2030.
The solar plant, which will be constructed in the Quipundo region, will provide renewable energy to approximately 90,000 homes and is expected to create up to 600 jobs. Once completed, the solar PV plant is poised to eliminate up to 224,000 tons of CO2 emissions per year.
Ducab Group – one of the largest energy manufacturing firms in the UAE – signed an MoU last November with Moroccan engineering firm Somagec Group to develop power, transmission systems and electrification in Angola. The groups will collaborate to construct over 400km of 22 kV transmission lines to assist the country’s electrification. The project, which is scheduled for completion by 2025, will provide approximately 2,000km of overhead transmission lines as well as high, medium and low voltage cables to the Angolan energy sector.
Maritime Maneuvers
A strategic partnership between the Angolan government and ports infrastructure group Abu Dhabi Ports was announced in April 2023 and is set to boost trade and investment between the two countries. Through the partnership, Abu Dhabi Ports has pledged to invest over $250 million to upgrade the port terminal at Luanda, a move that is set to promote economic growth, not only in Angola, but across the wider southern African region.
The partnership will also focus on developing and modernizing Angola’s logistics infrastructure through the construction of new facilities. The collaboration is poised to improve Angola’s connectivity to international partners, thereby increasing global trade and promoting socioeconomic growth in the country.
AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.