Egypt remained Africa’s largest foreign direct investment (FDI) recipient in 2025, receiving inflows of about USD 15 billion, said the UN Trade and Development (UNCTAD) in its latest “World Investment Report 2026”.
“These inflows helped North Africa remain the continent’s largest recipient subregion despite a sharp decline from the exceptional 2024 level,” the study said.
As per the report, Africa attracted less FDI in 2025 than in 2024. Still, it doesn’t take away the fact that the investors have continued to position themselves in sectors of the continent that are becoming increasingly important to the global economy. Also, the 2025 level was the third-highest recorded on the continent since 1990 and remained around one-third above Africa’s long-term average.
“Overall FDI inflows to Africa reached about USD 70 billion in 2025, below the exceptional USD 94 billion recorded in 2024, when a small number of large transactions boosted regional totals. Even so, 2025 was the third-highest level since 1990 for investment into Africa and remained roughly one-third above the continent’s long-term average,” UNCTAD noted.
At a time when competition for investment is increasingly centred on energy, infrastructure, technology, and critical resources, Africa continues to attract investor attention, including from the Gulf and other Asian economies. The question is whether that interest can translate into broader economic gains,” it added further.
UNCTAD attributed Egypt’s continued leadership to its ability to attract capital into priority sectors, including energy, infrastructure, technology, logistics, and manufacturing.
“These sectors are becoming increasingly important as global investors seek new opportunities amid shifting economic conditions,” it said.
As per the agency, the continent’s least developed countries played an important part in Africa’s FDI picture. They received about USD 33 billion, but inflows remained concentrated in a small number of economies linked to natural resources, energy, infrastructure, and selected manufacturing projects.
“Much of that interest is focused on sectors that are becoming more important in the global economy. This reflects three overlapping drivers: demand for energy infrastructure, interest in critical minerals needed for batteries and advanced manufacturing, and the search for new industrial and logistics locations as supply chains are reconfigured,” UNCTAD remarked.
On the global level, FDI rose 6% to USD 1.6 trillion in 2025, ending two years of decline. However, the recovery remains narrow, fragile, and uneven, as per the UNCTAD.
“Inflows to developed economies rose 11%, while developing economies recorded only 2% growth, reaching $901 billion. The figures point to a rebound that is not translating evenly into development opportunities,” the agency concluded.