Egypt leads Africa in FDI inflows with $15B in 2025

CAIRO - 7 July 2026: Egypt remained Africa’s leading destination for foreign direct investment in 2025, attracting $15 billion in inflows, according to UNCTAD’s World Investment Report 2026.

The report said Egypt’s performance helped North Africa maintain its position as the continent’s top FDI-receiving subregion, even as overall investment flows to Africa declined from the previous year. The higher figure recorded in 2024 was largely supported by a small number of major transactions.

FDI inflows to Africa totalled about $70 billion in 2025, down from $94 billion in 2024. However, the 2025 level still ranked as the third-highest recorded on the continent since 1990 and remained around one-third above Africa’s long-term average.

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.

The report also noted that competition for foreign investment is becoming more focused on energy, critical minerals and infrastructure projects. This trend has encouraged stronger interest from Gulf investors and several Asian economies in African markets, particularly in energy, real estate and logistics.

While the total value of newly announced projects declined by around one-third in 2025, the number of projects announced increased. According to the report, this reflects continued confidence among international companies in Africa’s long-term investment potential despite economic uncertainty and geopolitical pressures.

Egypt, Morocco and South Africa were among the leading destinations for investment in industrial development, renewable energy, green hydrogen and logistics. Their strategic locations and efforts to strengthen manufacturing capabilities continue to support their appeal to global investors.

The report stressed that the challenge for African economies is no longer limited to attracting foreign investment. The focus must also be on increasing the local impact of these investments through technology transfer, job creation, stronger supply chains and greater domestic manufacturing capacity.

Globally, FDI flows increased by 6% in 2025 to $1.624 trillion, compared with $1.532 trillion in 2024. Developing economies received $901 billion in inflows, while Africa recorded $70 billion, representing a 26% year-on-year decline.