Foreign direct investment (FDI) in Africa surged to a record $97 billion in 2024, marking a 75% increase over the previous year, with North Africa emerging as a key driver of the continent’s investment momentum, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2025 released Thursday.
Morocco, Tunisia, and especially Egypt led the regional upswing, reflecting rising global investor confidence in North African markets despite a backdrop of economic uncertainty. Morocco alone drew $1.6 billion in FDI in 2024—a 55% jump from 2023. Tunisia followed with a 21% increase, totaling $936 million.
The report attributed these gains to strengthened investment facilitation frameworks and liberalization policies across the region, particularly in strategic sectors such as renewable energy and infrastructure.
Egypt significantly outpaced its neighbors, with a major urban development project contributing a substantial share of Africa’s total FDI inflows. However, even excluding that deal, the continent still posted a healthy 12% year-over-year growth, signaling widespread investor interest beyond individual mega-projects.
North Africa also bucked the trend in Greenfield investment, long seen as an indicator of sustainable, long-term economic engagement. While project announcements elsewhere in Africa dropped by 5% and their value declined by 37%, North Africa recorded a 12% increase in greenfield investments, reaching $76 billion. Much of this growth was concentrated in the construction and metal product sectors.
Clean energy continued to dominate international project finance across Africa. Morocco maintained its momentum in solar and wind development, as did Tunisia and Namibia. In total, seven major clean energy deals across the continent were valued at $17 billion, reinforcing the sector’s central role in Africa’s investment narrative.
China remains a major economic force on the continent, with $42 billion in investment stock, and has been expanding into non-traditional sectors such as pharmaceuticals and food processing. European investors continue to represent the largest overall share of FDI in Africa, maintaining longstanding commercial ties.
UNCTAD’s report also highlighted a growing emphasis on investment-friendly policy reforms. Around 36% of all investment-related measures adopted by African countries in 2024 were aimed at facilitating FDI, with many focused on liberalization and the easing of regulatory barriers.
Despite the strong performance, the report sounded a note of caution. Cross-border mergers and acquisitions turned negative, and global economic headwinds pose risks to maintaining the current growth trajectory in 2025.
Still, with its expanding role in the renewable and digital sectors, North Africa, particularly Morocco, appears poised to play a leading role in shaping Africa’s sustainable investment future.
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