Top 10 African countries with the largest foreign investments

Africa, often referred to as the "next frontier" for economic growth and development, is gradually becoming a hotspot for Foreign Direct Investments (FDIs). This continent, rich in natural resources, youthful demographics, and untapped markets, is attracting a growing number of international investors.

However, according to a report put out by the United Nations Conference on Trade and Development (UNCTAD), on the 5th of July 2023, titled, ”World Investment Report 2023” Africa has experienced a steep decline in the value of FDIs intended for the emerging continent. 

The report shows that foreign direct investment (FDI) flows to Africa decreased from a record $80 billion in 2021 to $45 billion in 2022. They represented 3.5% of all FDI worldwide.

For context, see the massive difference in FDI figures for the 2021, compared to the figures listed below.

Greenfield project announcements increased by 39% to a total of 766. Africa was home to six of the top 15 greenfield mega projects (those costing more than $10 billion) that were announced in 2022.

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The report also notes that the deficit has increased from $2.5 trillion in 2015, when the SDGs were established, to around $4 trillion annually.  

A quick rundown on the report shows that In North Africa, Egypt saw FDI more than double to $11 billion as a result of increased cross-border merger and acquisition (M&A) sales. Nigeria saw FDI flows turn negative to -$187 million as a result of equity divestments. FDI flows to Ghana fell by 39%. 

In East Africa, flows to Ethiopia decreased by 14%, and the country remained the second-largest FDI recipient in the sub-Saharan region. FDI to Uganda grew by 39%. To be more specific with figures below are 10 African countries with the highest foreign direct investment in 2022.

PS: This list contains only countries mentioned in the report.