Egypt has emerged as the continent’s foreign direct investment (FDI) powerhouse, fueling a dramatic 75% surge in Africa’s inflows in 2024, according to UNCTAD’s World Investment Report 2025. A single $35 billion deal helped catapult Egypt from 32nd to 9th in the global FDI rankings, marking one of the sharpest investment climbs seen in 2024.
This headline-making deal helped Africa register a record year for FDI, even as global flows shrank by 11% (when excluding artificial conduit economies). Egypt alone absorbed nearly half of Africa’s total inflows of $97 billion, with its investment rising more than fourfold, from $10 billion in 2023 to $47 billion in 2024.
Why Egypt?
UNCTAD attributes Egypt’s leap to a single development mega-project, which is Egypt’s landmark Ras El Hekma “next‑generation city” project, a $35 billion development on the Mediterranean coast funded by the UAE’s ADQ sovereign wealth fund.
This brought about growing investor appetite for large-scale, high-impact ventures in Egypt’s infrastructure and energy sectors. The scale of investment increased confidence in Egypt’s economic reforms, strategic location, and improving regulatory environment.
Egypt’s success also contrasts sharply with much of the continent. While FDI rose 12% across Africa, excluding Egypt. While this country surged ahead, Nigeria recorded modest inflows, held back by investor caution over currency volatility.
South Africa saw a slight rebound, driven by mining and green energy interest, while Kenya’s numbers remained flat, reflecting subdued investor sentiment. Other key markets like Morocco and Ethiopia showed minimal movement, signalling a broader challenge in distributing investment across the continent.
Africa in a Global Context
While Egypt soared, the broader global picture was bleak. Global FDI (excluding conduit distortions) dropped for the second consecutive year, falling to $1.49 trillion. Investment in infrastructure and sustainability-linked sectors like renewable energy also declined across the developing world.
Africa’s performance, driven by Egypt, defied this trend. However, UNCTAD cautions that such gains are fragile if concentrated in one or two countries or dependent on singular projects.
What It Means
- $97B – Africa’s total FDI inflow in 2024 (record high)
- $47B – Egypt’s FDI intake (up from $10B)
- 75% – Growth in FDI to Africa (primarily due to Egypt)
- 12% – Growth in FDI to Africa excluding Egypt
- #9 – Egypt’s new global FDI rank
Egypt’s landmark deal shows what’s possible when large-scale investments align with political will and strategic planning. But it also exposes a vulnerability: Africa’s investment story remains highly uneven. To sustain momentum, more countries will need to attract consistent, diversified FDI, not just one-off windfalls.
