Foreign Investment in Africa Jumped 75% to Hit Record High of $97B
TLDR
- Foreign direct investment (FDI) into Africa surged 75% in 2024 to a record $97b, up from $55b in 2023
- The rebound lifts Africa’s share of global FDI flows to 6%, up from 4% the previous year
- North Africa accounted for two-thirds of all FDI, with $76 billion in new projects
Foreign direct investment (FDI) into Africa surged 75% in 2024 to a record $97 billion, up from $55 billion in 2023, according to UNCTAD’s World Investment Report released June 19. The rebound lifts Africa’s share of global FDI flows to 6%, up from 4% the previous year.
Even excluding Egypt’s multibillion-dollar urban development deal, the continent saw FDI growth of 12%, driven by increased investment facilitation efforts and policy reforms. Africa accounted for 36% of global investor-friendly policy measures in 2024. North Africa accounted for two-thirds of all FDI, with $76 billion in new projects. Egypt led the growth, followed by Tunisia (+21% to $936 million) and Morocco (+55% to $1.6 billion).
Renewable energy emerged as the strongest sectoral performer, attracting $17 billion in seven major projects across Tunisia, Morocco, and Namibia. By contrast, electricity and gas projects fell by $51 billion, underlining a shift in investor focus toward low-carbon infrastructure.
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Key Takeaways
Despite the record headline figure, Africa’s FDI recovery remains uneven. The total number of projects dropped 3%, and the value of new announcements fell 37%, from $178 billion to $113 billion. Outside North Africa, most regions saw continued declines, particularly in traditional energy and infrastructure. Europe remains Africa’s largest investment source, followed by the U.S. and China, which is refocusing its $42 billion portfolio on agribusiness, pharma, and social infrastructure via the Belt and Road Initiative. Cross-border M&A activity turned negative, highlighting investor caution and uncertainty around deal quality. To sustain the momentum, the report notes that African economies must enhance absorption capacity, modernize regulatory frameworks, and accelerate the green transition.
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