Africa's FDI Falls 26% to $70 Billion But Investors Are Backing More Projects Than Ever, and Egypt Is Leading the Pack

Africa is attracting less money but not fewer investors.

According to UNCTAD's World Investment Report 2026, FDI flows into Africa reached roughly $70 billion in 2025, down from $94 billion in 2024 a decline of nearly 26%. Despite the drop, inflows remained the third-highest on record since 1990 and about one-third above the long-term average, following an exceptional 2024 driven by several major deals.

Big deals fade, smaller projects take over

The 2025 picture looks fundamentally different: the value of newly announced greenfield projects fell by nearly a third, yet the number of projects increased. Investors haven't left Africa they're committing capital in smaller, more numerous increments. UNCTAD describes this as companies continuing to pledge capital through smaller projects “in a more selective global investment environment.”

Capital remains concentrated in energy, infrastructure and critical minerals, with investors from the Gulf and Asia playing an increasingly prominent role. Egypt topped the rankings with $15.5 billion, followed by Guinea ($7.8 billion), Mozambique ($5.7 billion), Nigeria ($4 billion) and Ethiopia ($3.8 billion).

From attracting investment to keeping its value

The report's central message: Africa's challenge is no longer whether it can attract investment, but whether it can convert it into jobs, technology transfer and industrial upgrading. UNCTAD notes that benefits remain "concentrated in a limited number of countries and industries," with least developed countries absorbing about $33 billion also heavily skewed toward natural resources, energy and infrastructure in a handful of economies.

The African Continental Free Trade Area is repeatedly cited as the key lever for capturing more value through regional collaboration, reliable power and transport infrastructure, and corridors that connect small markets to larger production systems, so that critical minerals and energy-transition resources generate more added value locally through processing, manufacturing and supply chains.

Guinea: Maize up 33%, but poultry feed still relies on imports

Maize production in Guinea rose 33%, from 569,000 tonnes in 2024-25 to nearly 757,000 tonnes in 2025-26. Yet poultry feed manufacturers remain heavily dependent on imports from Mali and Côte d'Ivoire. In Faranah, farmer Djiba Tounkara cultivates 15 hectares and hopes poultry farmers will increasingly source maize from Guinean producers. An initiative aims to develop 500 hectares of farmland while covering 70% of costs to strengthen domestic supply. In Conakry, a factory produces up to 1,500 tonnes of poultry feed per month, with maize accounting for half its composition. A more reliable local supply could cut transport costs and limit exposure to international price swings. The Agricultural Research Institute is supporting farmers with improved seeds and technical assistance.

Nigeria: $56 million a year spent on visas including the rejected ones

Nigerians spend nearly $56 million annually on visa fees and related expenses, including non-refundable costs from rejected applications, according to the Ministry of Foreign Affairs. Digital solutions entrepreneur Olisa Ogbechie planned to travel to Canada for drone-piloting training, but his application and those of his colleagues was rejected without clear explanation, costing him about $130 in non-refundable fees.

Concerns over applicants' ability to support themselves abroad are among the reasons cited for refusals. Yet for many Nigerians, the prospect of overseas employment, new skills and better economic opportunities remains a powerful motivation. In response, President Bola Tinubu's government is expanding digital skills training and domestic employment through the Hire from Nigeria initiative, aiming to create one million export-linked jobs by 2030.