Countries cannot grow in isolation; they need investment from every corner to build a successful economy. This is why countries around the world strive to attract Foreign Direct Investment (FDI).
FDI involves investment from one country into business interests in another, typically through establishing business operations, acquiring business assets, or owning stakes in foreign companies.
According to the World Investment Report 2024 released by the United Nations Trade and Development (UNCTAD), global FDI dropped by 2% to $1.3 trillion in 2023 amidst the economic slowdown and rising geopolitical tensions.
The report noted that issues related to crises, protectionist policies and regional realignments were responsible for the disruptions currently affecting the smooth running of economies across the world.
However, the distribution of investment varies across different countries, with certain nations emerging as more favoured destinations due to the specific advantages they offer.
In Africa, Egypt attracted the highest FDI in 2023, bringing in $9.841 billion, although this was a significant decrease from the $11.4 billion recorded in 2022. Similarly, South Africa saw a drop in FDI, with $5.2 billion in 2023 compared to $9.2 billion in 2022. Nigeria, Africa’s most populous country and once its largest economy, saw $1.873 billion in FDI.
An analysis of the largest investors also showed that European investors took the lead as the largest holders of FDI stock in Africa, with the United Kingdom topping the list ($60 billion), followed by France ($54 billion) and the Netherlands ($54 billion).
Below are the top 10 African countries with the highest foreign direct investments:
| Rank | Country | 2023 |
|---|---|---|
| 1 | Egypt | US$9.841 billion |
| 2 | South Africa | US$5.2 billion |
| 3 | Ethiopia | US$3.263 billion |
| 4 | Uganda | US$2.886 billion |
| 5 | Senegal | US$2.641 billion |
| 6 | Mozambique | US$2.509 billion |
| 7 | Namibia | US$2.345 billion |
| 8 | Nigeria | US$1.873 billion |
| 9 | Côte d’Ivoire | US$1.753 billion |
| 10 | Dr Congo | US$1.635 billion |
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