The latest figures from UN Trade and Development (UNCTAD) show that Africa attracted more than $100bn in foreign direct investment (FDI) inflows in 2025. Yet the headline number only tells part of the story. Beneath it lies a continent where investment is becoming increasingly concentrated, with a relatively small group of countries emerging as clear winners in the competition for global capital.
For investors and dealmakers, the data offers valuable insight into where confidence is growing and which markets are building the foundations for sustained economic expansion.
Egypt leads the field
With FDI inflows of $10.5bn, Egypt was Africa’s largest investment destination in 2025 by a considerable margin. The result reflects years of regulatory reforms, efforts to attract private capital and investment in strategic sectors including energy, manufacturing, infrastructure and financial services.
Egypt’s appeal is underpinned by a combination of factors that few African economies can match: a population exceeding 100 million, a large and growing consumer market, and a strategic position linking Africa, the Middle East and Europe. Together, these advantages continue to make the country a focal point for international investors seeking scale.
The billion-dollar markets
Beyond Egypt, four countries attracted more than $3bn in FDI inflows, highlighting their importance within Africa’s investment landscape.
Nigeria recorded inflows of $5.6bn, retaining its position as West Africa’s largest investment destination. Despite ongoing macroeconomic challenges, the country’s vast market, youthful population and expanding technology ecosystem continue to attract investors, particularly in fintech, energy and consumer sectors.
South Africa attracted $5.2bn, reaffirming its status as the continent’s most mature investment environment. Strong activity in mining, infrastructure and financial services, combined with deep and sophisticated capital markets, continues to support investor confidence.
Angola received $4bn in FDI as the country’s efforts to diversify beyond oil began to gain greater traction. Reforms aimed at improving the investment climate and attracting foreign capital are increasingly being reflected in the data.
Ethiopia attracted $3.6bn, reinforcing its position as one of East Africa’s most compelling growth stories. Despite ongoing security concerns in parts of the country, investment in manufacturing, particularly textiles and light industry, continues to strengthen Ethiopia’s role as a regional industrial hub.
The emerging standouts
Several smaller markets also delivered notable performances.
The Democratic Republic of Congo attracted $3.1bn, driven largely by demand for critical minerals such as cobalt, copper and lithium. As global industries race to secure supplies for the energy transition, the country’s vast mineral reserves have become increasingly strategic.
Côte d’Ivoire received $2.9bn, reflecting its growing status as the economic engine of Francophone West Africa. A diversified economy and a steadily improving business environment continue to enhance its appeal.
Kenya attracted $2.8bn, further consolidating Nairobi’s reputation as East Africa’s leading technology and services hub. The country’s vibrant innovation ecosystem continues to attract both venture capital and longer-term foreign investment.
Mozambique recorded $2.5bn in inflows as major liquefied natural gas projects continued to transform the country’s investment profile and draw significant international capital.
Mauritius attracted $2bn, demonstrating once again the importance of financial sophistication and regulatory stability. The island remains a preferred gateway for structuring investments across the continent.
Reading the negative numbers
Not all countries shared in the positive momentum. Sudan recorded net FDI outflows of $0.6bn, while Somalia and Chad also posted negative figures.
In many cases, these outflows reflect the repayment of loans to foreign parent companies rather than a wholesale withdrawal of investor confidence. Nevertheless, they highlight the continued impact of political instability and elevated risk perceptions in certain markets.
A continent of diverging fortunes
Africa’s FDI story in 2025 is not one of uniform growth. Rather, it is a story of increasing concentration, with capital flowing towards countries that offer scale, strategic resources, improving governance or a clear role within global supply chains.
For investors, the list of priority markets is becoming increasingly clear. Egypt, Nigeria, South Africa, Ethiopia, the Democratic Republic of Congo and Kenya are not only attracting capital; they are developing the institutional and economic foundations that help sustain investment over the long term.
At the same time, opportunities remain in the continent’s next tier of investment destinations, including Angola, Mozambique, Côte d’Ivoire and Tanzania. As these markets continue to strengthen their fundamentals, the window for early movers may become increasingly narrow.
The capital is already flowing. The question for investors is whether they are positioned to follow it.
Source: UN Trade and Development (UNCTAD), World Investment Report 2025, Annex Table 1.2, and UNCTADSTAT, May 2026.