UN Report: Africa Still Suffering from Weak Foreign Direct Investment
$70 billion in investments in 2025 alone
Written by: Ayman Ragab
A report released by the United Nations Conference on Trade and Development (UNCTAD) for 2026, titled “World Investment Report 2026: International Investment in an Era of Turbulence,” revealed that global foreign direct investment flows reached $1.6 trillion in 2025, an increase of 6% compared to the previous year.
Foreign direct investment into it remains at relatively low levels.
The report clarified that this recovery requires caution in its interpretation, as the increase in foreign direct investment figures does not necessarily mean an increase in the establishment of factories, infrastructure, job creation, or technology transfer, noting that investments have become more concentrated in a limited number of countries, sectors, and projects.
The report confirmed that the world’s 20 largest host economies attracted more than 80% of total global foreign direct investment flows in 2025, reflecting the concentration of international investment within a limited scope.
Regarding the African continent, the report indicated that despite its significant potential, especially in the energy, infrastructure, transition minerals, and hydrocarbons sectors, foreign direct investment flows to it remain at relatively low levels.
The percentage decrease was 26%
According to the report, Africa attracted $70 billion in foreign direct investment in 2025, compared with $94 billion the previous year, a decrease of 26%.
The report indicated that the total flows recorded in 2024 were influenced by a limited number of major deals, most notably the massive Ras El Hekma construction and real estate project in Egypt. It clarified that, excluding the exceptional surges resulting from large deals in South Africa in 2021 and Egypt in 2024, the 2025 flows represent the best performance recorded for the continent in recent decades.
Only about 4.40% of the total foreign direct investment flows recorded worldwide
The report noted that foreign direct investment received by Africa in 2025 accounted for only about 4.40% of total foreign direct investment flows recorded worldwide.
The report also stated that the hydrocarbon, mining, fertilizer, and automotive sectors were among the most prominent sectors that attracted foreign direct investment during 2025.
