By 
Foreign direct investment (FDI) inflows to Africa fell to about US$70 billion in 2025 from an exceptional US$94 billion recorded in 2024, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2026.
Despite the decline, UNCTAD said the continent’s 2025 performance was still the third-highest annual inflow since 1990 and remained about one-third above the long-term average.
“Investors continue to position themselves in sectors that are becoming increasingly important to the global economy,” the report stated.
It added that competition for investment was increasingly centred on energy, infrastructure, technology and critical resources.
According to the report, Africa continues to attract strong investor interest, particularly from Gulf and Asian economies, although it noted that the challenge remains whether that investment can be translated into broader and more inclusive economic gains.
UNCTAD said the total value of greenfield investment projects announced in Africa declined by nearly one-third during 2025. However, the number of announced projects increased, suggesting broader investor engagement through smaller-scale investments.
“This suggests companies continue to commit capital to future projects despite geopolitical tensions, trade policy uncertainty and a more selective global investment environment,” the report said.
The report further noted that Africa’s least developed countries (LDCs) received approximately US$33 billion in FDI during 2025.
Read more: Zambia Airports see 15% rise in passenger traffic, boosted by high profile international events
However, it observed that investment inflows remained heavily concentrated in a small number of economies, largely driven by natural resources, energy, infrastructure and selected manufacturing projects.
“Much of that interest is focused on sectors that are becoming more important in the global economy,” the report said.
Globally, the World Investment Report 2026 found that foreign direct investment demonstrated resilience in 2025, rising by 6 percent to US$1.6 trillion despite geopolitical tensions, trade policy uncertainty and persistently high financing costs.
UNCTAD said the increase was largely driven by fluctuations in investment flows through major financial centres and investment hubs, as well as stronger inflows into a limited number of large economies.
Excluding conduit flows through major European financial centres, global FDI increased by 4 percent in 2025, following two consecutive years of decline, according to the report.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments