Egypt leads Africa with $15 billion in foreign direct investment despite continental drop

Egypt secured its position as Africa’s leading destination for foreign direct investment in 2025, attracting $15 billion in inflows despite a broader slowdown in capital investment across the continent. The strong performance underscored the country’s resilience in drawing international investors even as overall foreign direct investment into Africa weakened during the year. 

According to the UNCTAD World Investment Report 2026, Egypt’s intake kept North Africa ahead of all other subregions. While the continent’s overall numbers dropped compared to 2024, UNCTAD noted that the previous year’s spike was unusual, driven by a few massive, one-off deals rather than a permanent trend.

Energy, infrastructure anchor African capital inflows

Foreign direct investment across Africa fell 26 percent to roughly $70 billion in 2025, down from $94 billion a year earlier. Despite the drop, the United Nations data shows last year’s total was still the third-highest since 1990, running about a third above the continent’s long-term average.

UNCTAD editors pointed out that Egypt stayed ahead because it consistently drew money into core industries. International corporations focused their capital on Egyptian energy, infrastructure, technology, logistics and manufacturing.

That shift reflects a broader global pattern. Corporate backers are zeroing in on energy, critical minerals and infrastructure projects. This pivot has brought heavy interest from Gulf sovereign investors and Asian corporations looking closely at African real estate and logistics.

While the dollar value of newly announced projects across Africa fell by roughly a third last year, the actual number of individual deals grew. UNCTAD analysts said this indicates that international corporations remain confident in the continent’s long-term returns, even with higher interest rates and geopolitical friction.

Renewables drive regional investment wins

Beyond Egypt, countries like Morocco and South Africa pulled in the bulk of industrial, renewable energy and green hydrogen commitments. Industry analysts credit their geographic positions and regional factory networks for keeping them on corporate shortlists.

However, the report suggests the real test for African governments is changing. Securing the initial check is no longer enough; the goal now is ensuring these billions actually train local workers, create payroll jobs and build local supply networks.

On the global stage, total foreign direct investment climbed 6 percent last year to $1.624 trillion, up from $1.532 trillion in 2024. Of that total, developing markets captured $901 billion, while Africa’s $70 billion share showed the sharpest yearly pullback.