Africa’s Investment Landscape Shifts with Record $100 Billion Inflow

Foreign direct investment (FDI) into Africa reached a remarkable $100 billion in 2025, according to UNCTAD data. While this headline figure is significant, the distribution reveals a continent where capital increasingly concentrates in a select group of nations.

Leading Destinations

Egypt emerged as the clear frontrunner with $10.5 billion in FDI—a testament to years of regulatory reforms and strategic investments in sectors like energy, manufacturing, infrastructure, and financial services. The country’s advantages include a population exceeding 100 million, a large consumer market, and its geographic position connecting Africa, the Middle East, and Europe.

Beyond Egypt, Nigeria ($5.6 billion), South Africa ($5.2 billion), Angola ($4 billion), and Ethiopia ($3.6 billion) each attracted more than $3 billion—underscoring their importance in Africa’s investment ecosystem.

Emerging Opportunities

Several smaller markets demonstrated notable performance:

• Democratic Republic of Congo: $3.1 billion, driven by demand for critical minerals like cobalt, copper, and lithium
• Côte d’Ivoire: $2.9 billion, reflecting its growing status as the economic engine of Francophone West Africa
• Kenya: $2.8 billion, further solidifying Nairobi as East Africa’s technology and services hub
• Mozambique: $2.5 billion, boosted by major liquefied natural gas projects
• Mauritius: $2 billion, highlighting the importance of financial sophistication and regulatory stability

Divergent Fortunes

Not all countries shared in this positive momentum. Sudan recorded net FDI outflows, while Somalia and Chad posted negative figures—underscoring the impact of political instability and risk perceptions on investment decisions.

Africa’s 2025 FDI story highlights a continent increasingly divided between winners and laggards, with capital flowing towards markets that offer scale, strategic resources, improving governance, or clear integration into global supply chains. For investors seeking long-term returns, the focus is shifting to countries building sustainable economic foundations.