Foreign direct investment (FDI) into Africa soared by an impressive 75% in 2024, reaching a record-breaking $97 billion, according to the latest United Nations Conference on Trade and Development (UNCTAD) report.
This remarkable growth lifted Africa’s share of global FDI to 6%, up from 4% the previous year, marking a significant shift in global investment patterns.
The surge was largely fuelled by large-scale urban development projects in Egypt, which heavily contributed to the North African region’s leadership in attracting foreign capital. However, when excluding Egypt’s extraordinary inflows, the continent’s FDI growth stood at a more modest 12%, totalling $62 billion, or 4% of global flows.
Governments across Africa continued to strengthen their investment environments, with 36% of newly adopted global pro-investment policies originating from the continent. European investors remain the largest stakeholders in Africa’s FDI stock, followed closely by the United States and China. Notably, emerging sectors such as pharmaceuticals and food processing are attracting increasing international attention.
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Regionally, Southern Africa witnessed a strong performance, with FDI rising by 44% to $11 billion, driven in part by renewed interest in Angola and Mozambique. Conversely, West Africa saw a 7% decline, as investments dropped from $16 billion to $15 billion.
Globally, FDI climbed by 4% to $1.5 trillion. Yet, UNCTAD cautions that this growth masks underlying weaknesses, as much of the increase was due to financial transfers through European economies rather than productive capital investment. Adjusted for these flows, global FDI fell by 11%, marking a second consecutive year of decline.
Africa’s record FDI inflows in 2024 underline its growing role in the global investment landscape, as governments continue to implement reforms aimed at unlocking private capital and driving sustainable development.
