A Record High for Foreign Investments in Africa Was Reached in 2024

In 2024, foreign direct investment in Africa grew significantly, reaching a record $97 billion. Compared to the previous year, this is an increase of 75%.

According to the United Nations Trade and Development (UNCTAD) World Investment Report 2025, North Africa is at the forefront of this foreign investment rise. This represents 6% of the global FDI, which is an increase of 2% from the year before.

Which Countries Led the Increase?

The confidence in North African markets enjoyed a substantial increase, even in the face of economic uncertainty. The countries that led this regional growth are Tunisia, Morocco, and Egypt. The former drew $936 million, which was a 21% increase from 2023. Morocco managed to draw as much as $1.6 billion in FDI in 2024. This represents a 55% increase from 2023.

However, Egypt did even better than its fellow countries. An international project finance deal for the country’s urban development pushed this record even higher.

But even before the deal, the African continent experienced a 12% annual growth. This is a sign that the investors’ interest is growing.

Foreign Investment in Africa and Rising Sectors

In various African subregions, foreign investment saw a massive boost in 2024. However, North Africa was in the lead.

International project finance deals saw a value increase of 15%. This was driven by big transport and energy infrastructure projects. IPF commitments increased by more than twice the size.

Meanwhile, project numbers decreased by 3%. The only area that showed significant growth was the renewable energy field. It landed seven big deals with a value of about $17 billion. This also included Egyptian projects for wind and solar plants, as well as power cables.

Tunisia, Namibia, and Morocco also had several renewable energy projects.

Cross-border mergers and acquisitions turned negative. Previously, they made up for around 15% of Africa’s FDI.

Greenfield investments also experienced a decline in Africa. Compared to $178 billion in 2023, the value went down by 37%, sitting at $113 billion. The announcements also decreased by 5%.

Except for North Africa, where greenfield investments grew by 12% and reached $76 billion, most countries had fewer greenfield initiatives. The largest increases in this sector were in the metal products and construction areas. On the other hand, gas and electricity supply projects decreased in value by $51 billion.

Biggest Investors in Africa

When it comes to foreign investors, China is still a big economic force in Africa. It has $42 billion in investment stock. Furthermore, it decided to expand into non-traditional fields, such as food processing and pharmaceuticals. However, in terms of the overall share of FDI, European investors are in the lead.

Moving forward, North Africa, with Morocco at the forefront, wants to play a bigger part in defining the sustainable investment future of the continent. That will be interesting to see, considering how significant its contributions were in the expansion of the renewable and digital sectors lately. If things keep improving, the African continent is looking at a bright future.