Africa attracted less foreign direct investment in 2025 than in the previous year. Yet the bigger story is that investors continue to position themselves in sectors that are becoming increasingly important to the global economy.
According to the World Investment Report 2026 by UN Trade and Development (UNCTAD), FDI inflows to Africa reached about $70 billion in 2025. That was below the exceptional $94 billion recorded in 2024, when a small number of large transactions boosted regional totals. Even so, 2025 was the third-highest level since 1990 for investment into Africa and remained roughly one-third above the continent’s long-term average.
Largest recipient
Egypt remained Africa’s largest FDI recipient, with inflows of about $15 billion, helping North Africa remain the continent’s largest recipient subregion despite a sharp decline from the exceptional 2024 level. At a time when competition for investment is increasingly centred on energy, infrastructure, technology and critical resources, Africa continues to attract investor attention including from the Gulf and other Asian economies.
While FDI declined from the unusually high level recorded in 2024 and greenfield project values fell by almost one third, project numbers increased, pointing to broader engagement through smaller projects. That suggests companies continue to commit capital to future projects despite geopolitical tensions, trade policy uncertainty and a more selective global investment environment.
Africa’s least developed countries received about $33 billion in FDI, but inflows remained concentrated in a small number of economies linked to natural resources, energy, infrastructure and selected manufacturing projects. Much of that interest is focused on sectors that are becoming more important in the global economy.
This reflects three overlapping drivers: demand for energy infrastructure, interest in critical minerals needed for batteries and advanced manufacturing, and the search for new industrial and logistics locations as supply chains are reconfigured.
Fastest growing economies
Countries such as Egypt, Morocco and South Africa continue to attract investment linked to industrial development, hydrogen production, logistics and renewable energy.
Namibia and other resourcerich economies are drawing attention as demand rises for minerals needed in batteries, renewable energy systems and advanced manufacturing.
These trends position parts of Africa within some of the fastest-growing segments of global investment. For many African economies, attracting investment into energy or resource projects is only the starting point.
