A Record Surge in Investments
In 2024, Africa witnessed a historic surge in foreign direct investments (FDI), amounting to $97 billion, as noted by the United Nations Conference on Trade and Development (UNCTAD). This represents a 75% increase compared to the previous year. This growth reflects a broader trend of investment facilitation and liberalization across the continent.
Egypt’s Prominent Role
Egypt stands out as the primary beneficiary, driven by a significant international agreement focused on urban development projects. Emirati investments, particularly in tourism and the construction of a new city near Cairo, further solidified its position. Excluding Egypt’s contribution, Africa still marked a 12% rise in FDI, reaching $62 billion, capturing 4% of the world’s investment flux.
Investment Policies and Their Impact
The report highlights the considerable impact of investment facilitation, accounting for 36% of pro-investor policies across Africa. Additionally, efforts towards liberalization are notable, constituting a fifth of such measures in both Africa and Asia.
Global Investment Trends in Africa
European investors hold the largest stock of FDI in Africa, trailed by the United States and China. Chinese investments, valued at $42 billion, span diverse sectors such as pharmaceuticals and agribusiness. The continent’s international project finance contracts grew by 15%, led by energy and transport infrastructure projects.
Challenges and Regional Disparities
Despite the overall growth, the number of new projects declined by 3%, except in North Africa where new project investments surged by 12%, totaling $76 billion. Contrary to the surge, investment proposals decreased by 5%, and their overall value shrank by 37% compared to 2023 levels. Renewable energy projects, however, marked significant traction, particularly in Egypt, Morocco, and Namibia.
Regional Success Stories
Morocco is also emerging as a success story, with its FDI increasing by 55% in 2024 to $1.64 billion. This signals a positive trend within the region, showcasing the potential for economic growth amidst regional variances.