Top 10 African countries with the highest foreign investment

Crises, protectionist policies and regional restructuring have disrupted the world economy, disrupting trade networks, regulatory environments and global supply chains. Over time, this has affected the stability and predictability of global investment flows, creating both obstacles and isolated opportunities.

According to the latest World Investment Report 2024 from the United Nations Conference on Trade and Development (UNCTAD), global foreign direct investment (FDI) is set to fall 2% in 2023 to $1.3 trillion due to an economic slowdown and rising geopolitical tensions.

FDI to developing countries fell 7 percent to $867 billion, while tough financing conditions led to a 26 percent decline in international project finance deals, essential for infrastructure investment. The decline makes the poorest countries more vulnerable to a global downturn in this type of investment.

Often referred to as the “next frontier” of economic growth and development, Africa is expected to become an FDI hotspot, but progress has been slow: FDI inflows to the continent fell 3 percent to $53 billion.

According to the report, Egypt will attract the most FDI in 2023, with a total of $9.841 billion, down from $11.4 billion in 2022.

Although the outlook for 2024 is challenging, the report suggests that easing financial conditions and efforts to encourage investment through national policies and international agreements will enable modest growth.

He also noted that pro-business and digital government solutions can encourage low investment by creating a more transparent and streamlined environment.