Keypoints:
- Africa attracted $69.5bn in FDI in 2025
- Egypt remained Africa’s leading investment destination
- Guinea’s mining boom propelled it into second place
AFRICA attracted approximately $69.5bn in foreign direct investment (FDI) in 2025, with Egypt retaining its position as the continent’s leading investment destination while multibillion-dollar mining and energy projects propelled Guinea and Mozambique into the top three, according to UNCTAD’s World Investment Report 2026.
Why it matters
The latest rankings reveal more than where international investors are placing their money. They show how global competition for strategic minerals, secure energy supplies, industrial capacity and large consumer markets is reshaping Africa’s investment landscape.
Although Africa’s inflows declined from the exceptional $94bn recorded in 2024, UNCTAD notes that last year’s figure was heavily inflated by Egypt’s Ras El-Hekma megaproject. Even after that one-off transaction faded from the data, Egypt remained Africa’s largest FDI destination, demonstrating the continent’s continued appeal despite geopolitical tensions and weaker global growth.
Egypt extends its lead
Egypt attracted approximately $15.45bn, accounting for more than one-fifth of all foreign investment entering Africa during the year.
While below the extraordinary 2024 level, the country continued to attract investment into manufacturing, renewable energy, logistics, construction and infrastructure. UNCTAD said underlying investment remained robust once the Ras El-Hekma transaction was excluded from comparisons.
Egypt’s appeal rests on structural strengths: a population exceeding 100 million, direct access to European and Middle Eastern markets through the Suez Canal, expanding industrial zones and a diversified economy. Government efforts to develop green hydrogen, renewable energy and logistics hubs have further strengthened its position as a regional manufacturing and export centre.
Despite inflation, public debt and foreign exchange pressures, Egypt’s scale and strategic location continue to outweigh many investor concerns.
Guinea’s mining boom changes the rankings
Guinea delivered Africa’s biggest surprise, with FDI rising more than fivefold to approximately $7.76bn.
UNCTAD attributed the surge largely to bauxite and the giant Simandou iron ore project, which requires extensive rail, port and power infrastructure alongside mining operations.
Africa Briefing previously examined the $15bn Simandou railway and port investment, including plans for a 670km rail corridor linking the mining region to a new export terminal.
The scale of Simandou illustrates why mining developments can dramatically alter annual FDI rankings. Capital flows extend well beyond extraction to include transport networks, energy infrastructure and processing facilities.
Guinea is also broadening its mineral strategy beyond iron ore and bauxite. Africa Briefing recently reported on Guinea’s critical minerals investment drive, covering new agreements involving lithium, cobalt and rare earth elements.
A planned $1bn alumina refinery further reflects the government’s ambition to process more minerals domestically rather than exporting raw materials.
The challenge now is ensuring that mining revenues translate into broader economic development through improved infrastructure, stronger local industries and skilled employment.
Mozambique and Nigeria maintain momentum
Mozambique ranked third after attracting approximately $5.69bn, underlining the continuing importance of LNG investment and offshore gas developments.
The country is also tightening its grip on strategic minerals. Africa Briefing reported that Mozambique’s critical minerals law requires a minimum 15 percent state stake in mining projects while encouraging greater domestic processing.
Nigeria attracted approximately $4.01bn, placing fourth after a recovery supported by major oil and gas financing agreements.
The improvement follows reforms introduced by President Bola Tinubu’s administration, including foreign exchange liberalisation and the removal of fuel subsidies. Nigeria retains enormous long-term advantages, including Africa’s largest population, abundant natural resources and a vibrant technology sector, but electricity shortages, regulatory uncertainty and infrastructure gaps continue to constrain investment.
Ethiopia and North Africa remain competitive
Ethiopia attracted approximately $3.80bn, maintaining its position among Africa’s leading investment destinations despite economic reforms and foreign exchange pressures.
Its attraction lies in a combination of market size, improving infrastructure and strategic influence as host of the African Union. Continued reforms in telecommunications and financial services have strengthened investor confidence, while the IMF projects economic growth of 9.2 percent in 2026.
Morocco attracted $3.34bn, supported by automotive manufacturing, aerospace, renewable energy and export-oriented industries. Its proximity to Europe, modern ports and integrated industrial base have made it one of Africa’s most diversified investment destinations.
East and West Africa remain attractive
Uganda attracted $3.36bn, largely driven by oil infrastructure projects, while Kenya received $3.20bn through continued investment in technology, logistics, renewable energy and financial services.
Africa Briefing recently reported that Kenya and the US were nearing a critical minerals agreement aimed at expanding domestic mineral processing.
Further west, Cote d’Ivoire attracted approximately $2.03bn while Ghana received $1.91bn. Both continue to benefit from infrastructure development, agribusiness, mining, financial services and improving macroeconomic stability.
Investment remains concentrated
The top ten destinations attracted a combined $50.55bn, representing 72.7 percent of Africa’s total FDI.
That leaves the remaining 44 economies competing for just over one-quarter of total inflows, illustrating investors’ preference for countries offering large markets, valuable natural resources, strategic locations or predictable policy environments.
Global competition is intensifying
Behind the rankings lies an increasingly competitive geopolitical landscape.
China remains deeply involved in African mining, infrastructure and manufacturing, while Gulf states continue expanding investments in ports, logistics, energy and agriculture.
The United States and European Union are also increasing investments in clean energy, digital infrastructure and critical minerals as governments seek resilient supply chains.
Africa Briefing’s analysis of Africa’s growing leverage in the global minerals race found that competition among China, the US, Europe, India and Gulf states is giving African governments greater scope to negotiate stronger investment agreements.
Looking beyond the rankings
UNCTAD’s data also serves as a reminder that FDI rankings should not be viewed in isolation.
A single mining or energy project can dramatically inflate annual investment figures without necessarily creating broad-based industrial development or employment. Equally, countries attracting smaller inflows may generate stronger long-term growth if investment is spread across manufacturing, technology and services.
For policymakers, the quality of investment ultimately matters more than the headline total.
Outlook
Africa enters the second half of the decade with considerable strengths: abundant critical minerals, a rapidly growing population, expanding cities and increasing demand for renewable energy and digital infrastructure.
UNCTAD expects global investment conditions to remain challenging amid geopolitical tensions, higher borrowing costs and trade uncertainty. Nevertheless, demand for strategic minerals, manufacturing, logistics and clean energy is expected to keep Africa high on investors’ agendas.
The central lesson from the 2025 rankings is not simply that investors favour Egypt or Guinea. Rather, capital is becoming increasingly strategic and selective, flowing towards countries that combine resources, market size, policy reforms and infrastructure.
For Africa, the next challenge is not merely attracting billions of dollars in foreign investment but transforming those inflows into industrialisation, stronger domestic value chains and sustainable improvements in living standards.
