Egypt has posted a staggering $46.1 billion in foreign direct investment (FDI) for the 2024/2025 fiscal year, marking a dramatic leap from $10 billion the year before and eclipsing inflows into Africa’s two largest economies—Nigeria and South Africa—by a wide margin.
The North African country, currently ranked the continent’s third-largest economy, now leads the pack in FDI performance, a turnaround fuelled by growing investor confidence, improving macroeconomic indicators, and an aggressive push for private-sector-led growth.
Nigeria, by contrast, reported a 42.3% plunge in FDI, attracting only $1.08 billion in 2024. South Africa’s 2024 FDI stood at about $2 billion, according to cumulative quarterly figures released by its central bank.
The southern economy’s dismal performance was even more telling in the quarterly breakdown, with inflows falling from $1.2 billion in Q1 to $381 million in Q2.
Growth momentum fuels investor appeal
Egypt’s Planning Minister, Rania Al-Mashat, credited the country’s improving economic fundamentals for the surge in capital inflows.
During her presentation of the FY2025/2026 Economic and Social Development Plan to the House of Representatives, she noted that Gross Domestic Product (GDP) growth accelerated from 3.5 % in the first quarter of the current fiscal year to 4.3 % in Q2.
The government expects the full-year growth rate to settle at 4%, and is targeting 4.5 % in the upcoming fiscal year.
Foreign reserves also rose by 34 % year-on-year to $47.4 billion as of February 2025, while inflation has continued on a downward path, aided by favourable base effects.
Remittances from Egyptians abroad nearly doubled to $17.1 billion in the first half of the fiscal year, up from $9.4 billion a year earlier.
Private sector leads historic investment drive
According to the minister, total planned investments for FY2025/2026 will hit a record $68.4 billion, with 62.7 % of this coming from the private sector.
This marks a significant shift from past years and aligns with the state’s strategy to reposition the private sector as the main engine of growth through regulatory reforms and competitive neutrality.
Public investment, projected at $22.6 billion, will be channelled through central government entities (37.6 %), public economic authorities (43.3 %), and governorates (19.1 %), the minister noted.
The investment-to-GDP ratio is expected to reach 17.1 %, up from 15 % in the current year and 13 % in the previous year.
Sectoral drivers and economic outlook
She added that the country’s economic s expected to be supported by a balanced mix of consumption (27 %), investment (37 %), and net exports (36 %).
Key sectors such as wholesale and retail trade, agriculture, manufacturing, real estate, transportation, and social services are projected to drive this expansion.
The Egyptian government projects GDP will grow to $399.1 billion at current prices in FY2025/2026, an 18 % increase from the $338.4 billion expected this year. At constant prices, GDP is projected to reach $178 billion.
While Egypt’s economic managers remain cautious about global volatility and regional instability, the sharp rise in FDI—especially in contrast to its regional peers—underscores investor confidence in the country’s reform agenda and growth trajectory.
