- Foreign direct investment (FDI) into Africa reached about $70 billion in 2025, according to UNCTAD’s World Investment Report 2026.
- Energy, infrastructure, critical minerals, technology and manufacturing attracted growing investor interest across the continent.
Foreign direct investment (FDI) into Africa reached about $70 billion in 2025, according to the World Investment Report 2026 by UN Trade and Development (UNCTAD). The figure represents Africa’s third-highest annual investment level since 1990. However, inflows fell from the record $94 billion recorded in 2024. Several large cross-border transactions drove the 2024 increase.
Despite the decline, Africa attracted about one-third more investment than its long-term average. Egypt remained Africa’s largest FDI recipient. The country attracted about $15 billion in foreign investment during the year. North Africa also remained the continent’s leading investment destination. However, investment in the region fell sharply from the exceptional levels recorded in 2024.
Investor interest is increasingly shifting towards sectors with strategic importance to the global economy. These sectors include energy, infrastructure, technology, critical minerals and manufacturing.
Africa’s least developed countries attracted about $33 billion in foreign investment in 2025. However, investment remained concentrated in a small number of economies. Investors directed much of the funding towards natural resources, energy, infrastructure and selected manufacturing industries.
Rising global demand for critical minerals has also increased investor interest in Africa. These minerals support battery production, advanced manufacturing and other technologies linked to the global energy transition.
Meanwhile, companies continue to develop new industrial and logistics hubs across the continent. These investments reflect efforts to diversify global supply chains and improve supply chain resilience. Gulf and Asian investors have also increased their focus on African markets. Governments and businesses from these regions are seeking access to strategic resources and new consumer markets. They also want to strengthen their positions within global supply chains.
The investment figures highlight Africa’s growing importance in the global energy transition. They also point to the continent’s expanding role in industrial development and supply chain diversification. However, the continent still faces the challenge of converting rising investment into broader economic benefits.
Governments will need to strengthen local industries, create jobs and improve infrastructure to ensure investment delivers wider development gains. Africa must attract more investment into sectors that can support inclusive and sustainable growth over the long term.