Victor EzejaAlthough African countries and some other developing economies faced challenges in attracting Foreign Direct Investment (FDI) in 2024, the FDI flows into the continent, however, surged by 84 per cent, reaching a record $94 billion.
Latin America and the Caribbean recorded a drop of 9 per cent to $173 billion in FDI in 2024. Also, Asia saw a drop of 7 per cent to $588 billion in the year.
Join our WhatsApp ChannelThis is according to a report that was released in January by the United Nations Trade and Development agency (formerly UNCTAD).
What Is Foreign Direct Investment?
Foreign Direct Investment refers to an investment made by a company or individual in one country into business interests located in another country. Unlike portfolio investment, which involves the purchase of securities like stocks and bonds, FDI involves establishing a lasting interest in or effective control over a foreign enterprise. This can take the form of acquiring a controlling stake in a foreign company, setting up a subsidiary, or engaging in joint ventures.
FDI offers a couple of benefits to destination countries including boosting economic growth, job creation, technology transfer, human capital development, infrastructure development, access to global markets, increased exports and foreign exchange earnings, and generally, government revenue.
FDI In Africa
The increase in FDI in Africa in 2024 was attributed largely to a megaproject in Egypt, the Ras El-Hekma peninsula, a tourism project. Spearheaded by the Abu Dhabi Developmental Holding Company (ADQ), a sovereign wealth fund from the UAE, the aim is to transform the peninsula into a top-tier tourist destination, a financial hub, and a free trade zone with state-of-the-art infrastructure. The UNCTAD report, however, indicated that without this project, the continent’s inflows rose by 23 per cent but remained modest at $50 billion.
Analysts observed that FDI in African countries has become increasingly significant in recent years as the continent emerges as a key destination for global investors. The continent’s vast natural resources, growing population, and improving business environment have attracted foreign investors seeking opportunities in sectors like mining, agriculture, energy, telecommunications, and manufacturing.
READ ALSO: 10 African Countries With The Lowest Fuel Prices In March
However, according to analysts, FDI in Africa is unevenly distributed, with some countries attracting more investment than others due to factors like political stability, infrastructure, and regulatory frameworks.
Top 10 African countries Receiving Highest FDI in Africa
Here are the top FDI destinations in Africa, according to UN Trade and Development World Investment Report (WIR) 2024.
1. Egypt
Egypt is still the top destination for FDI in Africa, collecting over $9 billion in 2023.
This is largely attributed to its good location, substantial market, and continual changes that have boosted the environment for doing business.
The energy and real estate industries have effectively brought investments to the nation.
2. South Africa
Coming after Egypt in the chart is South Africa which attracted around $5 billion in FDI in 2023, mostly in the automotive, telecommunications, and renewable energy sectors.
Because of its infrastructure and reasonably developed financial sector, the country is a favourable area to invest in; yet, the political and economic upheaval has considerably curtailed the country’s potential.
3. Ethiopia
Ethiopia recorded around $3.2 billion in FDI in 2023, mostly in industry and infrastructure.
Attracting foreign capital has been aided by the government’s emphasis on industrialization and its investments in industrial parks. However, political instability remains a challenge.
4. Uganda
Uganda received $2.886 billion in FDI in 2023, establishing itself as a top investment destination in East Africa.
The country’s expanding oil and gas sector, particularly the Lake Albert oil project, has been a major draw for foreign investors.
In addition to energy, the agricultural sector has also seen substantial investment, with projects focused on improving productivity and value addition. Government initiatives aimed at enhancing the business environment, such as tax incentives and infrastructural development, have further bolstered Uganda’s investment appeal.
5. Senegal
Senegal got $2.641 billion in foreign direct investment (FDI). This was said to have been propelled by vigorous economic reforms embarked on by the country and timely energy and infrastructure projects.
The country has emerged as an important hub for renewable energy initiatives, with considerable investments in solar and wind power.
Senegal’s political stability and proactive government measures, such as the Plan for an Emerging Senegal (PES), have fostered a favourable investment environment.
The expansion of Dakar’s port and the creation of new industrial zones are also drawing foreign investors.
6. Mozambique
Mozambique received $2.509 billion in FDI in 2023, owing to its abundant natural resources, mainly in the liquefied natural gas (LNG) sector.
The country’s large offshore gas deposits have attracted big international energy corporations, resulting in significant investment inflows.
Infrastructure projects, such as the construction of new ports and railways, are also major sources of foreign investment.
7. Namibia
Namibia received $2.345 billion in FDI in 2024, with investments primarily in mining, renewable energy, and tourism.
The country’s abundance of natural resources, including diamonds, uranium, and gold, has long attracted global investors. Recently, the government’s focus on producing renewable energy, particularly solar and wind, has resulted in new investment prospects.
8. Nigeria
Nigeria being the third largest economy in Africa received an estimated $1.8 billion in 2023, taking the 8th position in the chart.
The oil and gas business is the primary attraction, although recent government efforts to diversify the economy have included investments in technology and telecommunications. However, barriers to larger FDI inflows remain, such as security concerns and ineffective regulatory systems.
9. Côte d’Ivoire
In 2023, Côte d’Ivoire attracted $1.7 billion in FDI.
A few of the primary industries pushing this boom are mining, energy, notably in renewable energy initiatives, and agriculture—the nation leads the globe in the production of coffee and cocoa.
Despite political uncertainties and infrastructure shortfalls, Côte d’Ivoire’s stable environment and investment incentives give it a strong potential for future FDI inflows.
10. Democratic Republic of Congo
Foreign Direct Investment in the Democratic Republic of the Congo (DRC) totalled $1.635 billion. Multinational corporations engaged in mining and resource extraction are drawn to the nation by its abundant mineral resources, which include diamonds, copper, and cobalt.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
![Abandoned Promise: How UNIZIK's Neglect Of Ifite-Ogwari Campus Threatens Nigeria's Food Security [Video]](https://www.primebusiness.africa/wp-content/uploads/2025/03/UNIZIK-Ifite-Ogawari-Campus-Faculty-of-Agriculture-720x424.jpg)
![Abandoned Promise: How UNIZIK's Neglect Of Ifite-Ogwari Campus Threatens Nigeria's Food Security [Video]](https://www.primebusiness.africa/wp-content/uploads/2025/03/UNIZIK-Ifite-Ogawari-Campus-Faculty-of-Agriculture-480x384.jpg)
