Africa Sees Significant Increase in Foreign Direct Investment in 2024
Africa experienced a significant surge in foreign direct investment (FDI) in 2024, driven by a strong dynamic in North Africa, according to the 2025 World Investment Report by UNCTAD. Egypt, Tunisia, and Morocco are among the top beneficiaries, despite a decline in global greenfield project activity.
Key figures show that FDI flows to Tunisia increased by 21% to reach $936 million, while Morocco saw an impressive 55% increase, reaching $1.6 billion. Egypt, the main driver of this dynamic, saw its commitments in infrastructure financing projects (IPF) more than double, propelling the region as the main engine of growth on the continent.
At the continental level, investments in greenfield projects – new projects launched from scratch – declined by 37%, from $178 billion in 2023 to $113 billion in 2024. However, North Africa bucked the trend, with a 12% increase in announced amounts, totaling $76 billion, representing two-thirds of Africa's total greenfield investment.
Tunisia stands out with the announcement of projects worth $13 billion, compared to almost nothing the previous year. This spectacular progress is partly explained by the launch of a mega-project in renewable energy, estimated at $6 billion.
Egypt, on the other hand, recorded a 30% growth in the value of projects, driven by several large-scale investments, including a $3.8 billion submarine transmission cable project and a $2.5 billion hybrid solar-wind power plant. Other notable projects include green hydrogen production in Tunisia and Morocco, as well as large solar and wind installations in Namibia.
On the other hand, cross-border mergers and acquisitions (M&A), which accounted for around 15% of FDI inflows to the continent in recent years, turned negative in 2024. The continent recorded net divestments of $1.5 billion, partly due to Exxon Mobil's sale of its Nigerian oil assets for $1.1 billion.
Moreover, European investors remain the largest holders of FDI stocks in Africa, particularly the Netherlands, the United Kingdom, and France. American investments have also increased, with a growing interest in digital infrastructure, energy, and the valorization of existing assets.
China, on the other hand, is pursuing its diversification, with significant investments in construction materials, pharmaceuticals, agro-food, and even motorcycle manufacturing. A third of Chinese projects under the Belt and Road Initiative in Africa now focus on social infrastructure (health, education, water).
Finally, three sectors continue to dominate greenfield investment in Africa: energy, construction, and extractive industries. In 2024, energy emerged as the most attractive sector, with project values more than tripling and representing over 20% of the total value.
