10 African countries with the largest foreign investments

Crises, protectionist policies, and regional realignments are disrupting the world economy, fragmenting trade networks, regulatory environments, and global supply chains. This has over time affected the stability and predictability of global investment flows, creating both obstacles and isolated opportunities.

According to the United Nations Conference on Trade and Development’s (UNCTAD) latest World Investment Report 2024, global foreign direct investment (FDI) dropped by 2% to $1.3 trillion in 2023 due to economic slowdowns and rising geopolitical tensions.

FDI to developing countries fell by 7% to $867 billion, with tight financing conditions causing a 26% decline in international project finance deals, which are crucial for infrastructure investment. This decline has made the poorest countries more vulnerable to global downturns in this type of investment.

Africa, often called the “next frontier” for economic growth and development, is expected to become a hotspot for FDIs, but progress is still slow. FDI inflows into the continent fell by 3% to $53 billion.

The report notes that Egypt attracted the most FDI in 2023, totalling $9.841 billion, down from $11.4 billion in 2022.

While 2024 prospects are challenging, the report suggests that modest growth is possible, thanks to easing financial conditions and efforts to facilitate investment through national policies and international agreements.

It also noted that business facilitation and digital government solutions can boost low investment by creating a more transparent and streamlined environment.