Top 10 African Countries Poised to Receive Highest Foreign Direct Investment (FDI) in 2025

In Summary:

• According to UNCTAD data, Foreign Direct Investment (FDI) flows to Africa declined to around $45 billion, representing only roughly 3.5% of global FDI.
• In Africa, Egypt leads the list of countries with the highest FDI due to mergers and acquisitions. As of 2024, Egypt has received over $35 billion in FDI, which was one-third of Africa's total FDI.
• China is currently considered the largest foreign investor in Africa, contributing significantly to the overall FDI figures. 
• This article highlights how much each country has received in FDI, their key sectors that attract the investment and their projected rank due to the FDI they stand to receive in 2025.

Deep Dive!!

Foreign Direct Investment (FDI) is vital for the economic growth of emerging economies, including those in Africa, as it introduces essential capital, technology, and management expertise, facilitating integration into global markets.

The value of FDI received in Africa has been on an upward curve. However, in 2023, Africa experienced a 3% decline in FDI inflows, totaling $53 billion. Also, within that same period, the global FDI decreased by 2% to $1.3 trillion in 2023, influenced by economic slowdowns and rising geopolitical tensions. Experts claim that the adoption of the African Continental Free Trade Agreement (AfCFTA) Investment Protocol in 2023 is anticipated to boost intra-regional FDI, fostering economic integration and growth within the continent—and address the reduction in FDI across the continent.

According to UNCTAD data, Egypt, the country with the highest FDI in Africa has enjoyed a significant increase in FDI due to mergers and acquisitions embarked upon by the country. Across Africa, political stability, government effectiveness, corruption levels, and rule of law are major determinants of FDI attraction. 

China is currently considered the largest foreign investor in Africa, contributing significantly to the overall FDI figures—the reason for this is not far-fetched because China has within the last decade focused on minerals and extractive industries. So, the target has turned to countries in Africa with rich natural resources and industries. As of 2024, Egypt has received $35 billion in FDI, which was one-third of Africa's total FDI. Egypt's FDI is driven by its strategic location, the Suez Canal, and its diversified economy.

In 2024, FDI in Africa rose 85% from the previous year to reach $94 billion—from this total, North African countries collectively secured $51 billion in FDI, while Sub-Saharan Africa recorded $44 billion in FDI.

Below, we have highlighted the top 10 African countries poised to receive the highest FDI in 2025, along with an overview of their economic landscapes, reasons for their attractiveness to investors, and the positive impacts of FDI on their economies.

Here are the Top 10 African Countries Poised to Receive the Highest Foreign Direct Investment (FDI) in 2025. Check them out!

10. Democratic Republic of Congo— As of March 2025, the Democratic Republic of the Congo (DRC) has a population of approximately 111.6 million people. The DRC's mining industry is a cornerstone of its economy, producing copper, diamonds, tantalum, tin, gold, and over 70% of the world's cobalt supply. The DRC attracts US$1.635 billion, primarily in mining. Its vast mineral wealth, despite political challenges, offers significant opportunities. Government efforts to improve the regulatory environment are encouraging further investments.

9. Côte d'Ivoire—Côte d'Ivoire has experienced rapid economic growth, making it one of the continent's fastest-growing economies. The country's economy is diversified, with significant contributions from agriculture, mining, and services. It is the world's largest producer of cocoa beans and has substantial reserves of oil and gas. Côte d’Ivoire’s FDI of US$1.753 billion is driven by a stable political environment, diversified economy, and strategic West African location. Infrastructure improvements have further increased investment.

8. Nigeria—Nigeria is the continent's most populous nation and boasts the largest economy, primarily driven by oil and gas production. In recent years, the country has diversified its economy, with significant growth in sectors such as telecommunications, agriculture, and services. Nigeria receives US$1.873 billion despite challenges, thanks to its large market, natural resources, and growing middle class. Significant investments in oil, gas, telecommunications, and manufacturing are key drivers.

7. Namibia—Namibia's stable political environment, rich mineral resources, and strategic location along the Atlantic coast make it appealing to investors. The government's commitment to infrastructure development and renewable energy projects also contributes to its attractiveness. Namibia’s US$2.345 billion FDI is due to its rich natural resources, political stability, and strategic location. Efforts to develop tourism and promote sustainable growth also play a role.

6. Mozambique—Mozambique's vast natural gas reserves have attracted substantial foreign investment. The government's efforts to stabilize the political environment and improve regulatory frameworks have further enhanced its attractiveness. Mozambique attracts US$2.509 billion, primarily in the natural gas sector. Its vast reserves, strategic Indian Ocean location, and improved business environment contribute to its appeal.

5. Senegal—Senegal's political stability, strategic location with access to the Atlantic Ocean, and membership in the West African Economic and Monetary Union (WAEMU) make it attractive to investors. The government's focus on infrastructure development and energy projects also plays a significant role. Senegal, with US$2.641 billion in FDI, benefits from a stable political environment and strategic location. Investments in energy, mining, and infrastructure, along with proactive government policies, drive FDI inflows.

4. Uganda—Uganda's recent oil discoveries have attracted significant foreign investment. Additionally, political stability, a liberalized economy, and a strategic location in East Africa contribute to its appeal. Uganda’s FDI of US$2.886 billion is fueled by infrastructure investments, particularly in energy and transport, and its natural resource wealth. The investments have led to the development of the oil and gas sector, infrastructure improvements, and growth in telecommunications. These developments have created employment opportunities and stimulated economic activities.

3. Ethiopia—Ethiopia's large population offers a substantial labour force and consumer market. The government's focus on industrialization, particularly through the development of industrial parks, and investments in infrastructure such as railways and energy projects has made the country appealing to foreign investors. Ethiopia’s US$3.263 billion FDI is driven by rapid economic growth and large-scale infrastructure investments. Industrial parks and economic liberalization reforms have significantly attracted foreign investors.

2. South Africa—As one of the most developed economies in Africa, South Africa offers a diversified economy, advanced infrastructure, and a well-established legal framework. Its membership in BRICS and access to other African markets through regional agreements further enhance its attractiveness. South Africa attracts US$5.233 billion due to its well-developed infrastructure, rich mineral resources, and sophisticated financial markets. The government’s focus on reducing red tape and promoting industrialization has boosted FDI.

1. Egypt—Egypt's strategic location as a transcontinental nation connecting Africa and Asia, coupled with the Suez Canal's significance in global trade, enhances its appeal. The government has implemented economic reforms, improved infrastructure, and established free zones to create a conducive environment for investors. Egypt leads with US$9.841 billion in FDI, thanks to its strategic location, the Suez Canal, and diversified economy. Reforms improving the business climate and incentives for investors have been key.