Africa is fast emerging as the Gulf’s newest frontier for capital. In the past two weeks, Al Mansour Holdings, one of Qatar’s leading conglomerates, announced plans to invest $103 billion across six African nations.
The portfolio spans six countries, with the Democratic Republic of Congo leading the way, accounting for the largest share of $21 billion, followed by Mozambique with $20 billion. Zambia and Zimbabwe secured $19 billion each, while Botswana and Burundi received $12 billion apiece, the smallest allocations.
Qatar’s push beyond hydrocarbons
Qatar’s domestic economic structure explains much of this outward pivot. Despite its rise from a pearl-diving economy into one of the world’s wealthiest energy exporters, hydrocarbons still account for around 60% of Gross Domestic Product (GDP), according to a 2024 market analysis by New Zealand’s Ministry of Foreign Affairs and Trade.
This dependence has proven risky. In 2008, when oil prices crashed, the country’s capital, Doha’s revenues tumbled from $115 billion to just $19.8 billion in a single year, highlighting the volatility of a resource-dependent economy.
Agriculture, construction, and other domestic industries remain limited by geography. More than a century ago, John Lorimer, a British Diplomat, said that hydrocarbons were Qatar’s “principal and almost exclusive source of livelihood, with agriculture hardly existing.” That remains largely true today: agriculture contributes just 0.65% of GDP.
To reduce this reliance, Qatar launched its National Vision 2030 in 2008 under then-Emir Sheikh Hamad bin Khalifa Al Thani. The plan emphasises building a knowledge-based economy through education, services, finance, tourism, and technology. Africa has emerged as a natural partner in this diversification agenda.
Africa offers what Qatar needs
Africa provides what Qatar lacks—vast arable land, abundant labour, water resources, and critical minerals such as gold, copper, and cobalt. In exchange, Qatar brings capital, energy expertise, and infrastructure financing.
This partnership is not new. In 2019, Qatar Airways acquired a 60% stake in Rwanda’s new international airport, later expanding its presence to include carriers such as RwandAir and Air Botswana. Qatari firms have since moved into telecommunications, banking, and energy across Nigeria, Kenya, South Africa, and Zambia.
The scale is now accelerating. According to the United Nations Conference on Trade and Development, Africa’s Foreign Direct Investment inflows surged by 75% in 2024, compared with a global rise of just 4%, driven heavily by Gulf capital.
Qatar’s growth outlook
Qatar’s economy expanded by 2.6% in 2024, up from 1.4% in 2023, driven by strong growth in non-hydrocarbon sectors such as education (14.4%), food services (8.7%), and tourism, which attracted 5.08 million visitors, according to the World Bank.
Looking ahead, growth is projected at 5.4% in 2026 and 7.6% in 2027, supported by the North Field Liquefied Natural Gas expansion, which is expected to boost hydrocarbon output by 40%.
While revenue as a share of GDP fell to 26.8% in 2024, Qatar’s reserves strengthened to $70.2 billion, supported by the Qatar Investment Authority’s $526 billion asset base. This fiscal cushion is enabling bold overseas bets such as Al Mansour’s Africa deal.
A wider Gulf trend
Qatar is not acting alone. Gulf states—Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates (UAE)—are all increasing their investments in Africa under their own Vision 2030 programs, blending diversification with geopolitical and food security goals.
Historically focused on the Horn of Africa and the Red Sea, Gulf capital is now spreading across the continent. Recent examples include the UAE’s Masdar pledging $10 billion in clean energy by 2030, and Saudi Arabia’s ACWA Power developing a solar plant in South Africa.
For Africa, these partnerships offer infrastructure, financing, and employment opportunities. For the Gulf, they provide food security, energy diversification, and political leverage in a continent expected to host the world’s fastest-growing population and middle class.
