Foreign Investment in Africa Jumped 75% in 2024, Defying Global Trends

A Surge in Foreign Direct Investment

Africa stood out in 2024 as one of the few regions to buck global investment headwinds. Foreign direct investment (FDI) surged by 75%, in sharp contrast to the global 2% decline. Much of this growth was driven by Egypt’s $35 billion Ras El-Hekma real estate megaproject. However, even without this significant project, the continent still posted a respectable 12% gain. This is clear evidence of the growing investor appetite for African opportunities.

The continent’s share of global FDI flows doubled to 6% in 2024, up from 3% the year before. While modest in absolute terms, this underscores Africa’s rising profile in global capital markets. Yet beneath the headlines, the picture is mixed. Greenfield project values dipped by 5%, even as the number of projects rose. This indicates that investors are spreading their bets across smaller ventures.

Shifting Sector Trends

Sector trends reflect shifting investor priorities. Telecom projects nearly doubled in value, driven by Africa’s expanding digital economy and the increasing demand for mobile connectivity. In contrast, investment in extractive industries plunged by 48%. This decline is a result of lower commodity prices and increased caution surrounding carbon-intensive projects.

At the same time, UNCTAD notes that activity is heavily concentrated in real estate, infrastructure, and energy transition-linked projects. This leaves development-critical areas like health, education, and water underfunded. This divergence highlights Africa’s challenge: attracting investment not just in high-profile megaprojects, but in sectors most critical to inclusive development.

The Role of AfCRA and Blended Finance

The launch of AfCRA, Africa’s upcoming credit rating agency, and AU-led pushes around blended finance may help de-risk these investments. However, progress will require more than institutional innovation. UNCTAD stresses the need for stronger public–private pipelines, harmonized regulatory frameworks, and smarter incentives. These measures are essential to shift flows from real estate and extractives into SDG-aligned industries.

Africa may be capturing attention, but translating momentum into impact depends on turning rising FDI into long-term, broad-based growth. The potential is there, but it requires a concerted effort to ensure that investments are directed toward sustainable and inclusive sectors.

The Importance of Inclusive Development

Inclusive development is crucial for Africa's future. While large investments in real estate and infrastructure are important, they cannot be the sole focus. Areas such as health, education, and water must also receive attention and funding. These sectors are vital for improving the quality of life for millions of Africans.

Investors should consider the long-term benefits of supporting projects that enhance social welfare. By doing so, they can contribute to a more balanced and equitable growth trajectory for the continent.

Conclusion: A Path Forward

In conclusion, Africa's investment landscape in 2024 presents both challenges and opportunities. The surge in FDI is a positive sign, yet it must be matched by investments in critical sectors. The continent's ability to attract diverse investments will determine its future growth and development.

As stakeholders work together to create a more inclusive investment environment, the potential for Africa to thrive is immense. By focusing on sustainable development goals and fostering innovation, Africa can turn its investment momentum into lasting impact.

Source: UNCTAD