FDI inflows to Africa rose by 75% to $97 billion, with Egypt accounting for the largest share.
By: Hanan Mohamed
Thu, Jun. 19, 2025
Egypt recorded a significant increase in foreign direct investment (FDI) in 2024, according to the World Investment Report 2025, launched today by UN Trade and Development (UNCTAD) in cooperation with the Egyptian government.
FDI inflows to Africa rose by 75% to $97 billion, with Egypt accounting for the largest share. The country moved from 32nd to 9th globally among top FDI recipients, driven by large-scale infrastructure projects and growth in project-finance commitments.
Global FDI Trends
The report shows that global FDI rose by 4% to $1.5 trillion in 2024. However, when excluding conduit-economy flows, global FDI declined by 11%, reflecting a second consecutive year of contraction. UNCTAD notes that the outlook for 2025 remains uncertain due to geopolitical and economic factors affecting investor confidence.
Investment aligned with the Sustainable Development Goals (SDGs) in developing countries declined across several sectors, including infrastructure, renewable energy, water and sanitation, and agrifood systems, with reductions ranging from 25% to 33%. The health sector was the only area to register growth.
Digital Economy and Policy Measures
Investment in the digital economy continues to expand, particularly in data centres and fintech, though it remains concentrated in a few regions. UNCTAD recommends better integration of digital investment strategies with broader national policies to close existing gaps.
In terms of policy, countries implemented 174 investment policy measures in 2024, the second-highest number on record, with 78% favouring investors, often shaped by geopolitical and industrial-policy considerations.
Egypt in Focus
According to the report, Egypt was the primary contributor to Africa’s FDI growth in 2024. Key developments include a notable increase in project-finance commitments, particularly in energy and transport infrastructure, Continued inflows despite a wider decline in greenfield project announcements across the continent and Egypt’s role in supporting North Africa’s position as a leading subregion for investment in Africa.
The report attributes part of this growth to projects such as the Ras El-Hekma urban development, among others.
Commenting on these figures, Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, noted that Egypt's investment performance reflects ongoing economic reforms aimed at enhancing productivity and attracting private sector engagement.
For his part, Hassan Elkhatib, Minister of Investment and Foreign Trade, highlighted efforts to improve the investment climate through policy reforms and structural adjustments.
From UNCTAD, Richard Bolwijn, Director of the Investment Research Branch, emphasized the need for international cooperation to support sustainable investment in developing economies.
The event featured a technical briefing on global investment trends and included participation from representatives of the private sector, international organizations, and academia.