Africa attracts $70 billion in FDI as energy and critical minerals drive investment

Foreign direct investment (FDI) flows to Africa reached approximately $70 billion in 2025, marking the continent’s third-highest annual investment level since 1990, according to the World Investment Report 2026 by UN Trade and Development (UNCTAD).

Although inflows declined from the record $94 billion recorded in 2024, when several large cross-border transactions boosted regional figures, investment remained around one-third above Africa’s long-term average.

Egypt retained its position as Africa’s largest recipient of foreign investment, attracting approximately $15 billion in FDI. The inflows helped North Africa remain the continent’s leading investment destination despite a sharp drop from the exceptional levels recorded a year earlier.

Investor interest across Africa is increasingly concentrated in sectors that are becoming more critical to the global economy, including energy, infrastructure, technology, critical minerals, and manufacturing.

Africa’s least developed countries attracted approximately $33 billion in foreign investment in 2025. However, inflows remained heavily concentrated in a handful of economies, with most investments directed toward natural resources, energy, infrastructure, and selected manufacturing industries.

The investment trends reflect rising global demand for energy infrastructure and critical minerals used in batteries and advanced manufacturing, alongside efforts to establish new industrial and logistics hubs as companies reconfigure global supply chains.

The continent has also continued to attract growing investor interest from Gulf and Asian economies, as governments and businesses seek access to strategic resources, expand into new markets, and strengthen supply chain resilience.

Despite the decline in overall investment compared with 2024, continued investor interest in strategic industries underscores Africa’s expanding role in the global energy transition, industrial development, and supply chain diversification. The key challenge now will be ensuring these investments translate into broader, more inclusive, and sustainable economic growth across the continent.