Foreign direct investment (FDI) inflows into Africa reached nearly $70 billion in 2025, marking the continent’s third-best performance since 1990, according to the UNCTAD World Investment Report 2026. Although down from the record $94 billion recorded in 2024, the figure remains roughly one-third above Africa’s historical average.
UNCTAD attributes the decline to the absence of the mega-deals that boosted investment figures the previous year. Against a backdrop of geopolitical tensions and tighter global investment conditions, the value of newly announced projects fell by nearly one-third. However, the number of announced projects increased, driven mainly by investors from the Gulf and Asia, who favored smaller-scale investments in the energy, infrastructure, logistics, and real estate sectors. Africa’s Least Developed Countries (LDCs) attracted nearly $33 billion in FDI. Nevertheless, these investments remain heavily concentrated in a limited number of countries, primarily in natural resources, energy, infrastructure, and selected industrial projects. The report also highlights growing investor interest in critical minerals, energy infrastructure, and emerging industrial hubs. This trend is benefiting countries such as Egypt, Morocco, and South Africa, which are strengthening their capabilities in manufacturing, logistics, and green hydrogen, while Namibia is positioning itself within the battery component value chain. While these investment flows confirm Africa’s growing attractiveness, UNCTAD stresses that their benefits remain unevenly distributed. The organization calls on African countries to accelerate reforms, expand infrastructure, and strengthen workforce skills to transform these capital inflows into sustainable jobs, industrialization, and greater economic diversification.