Africa, often called the “next frontier” for economic growth and development, is poised to become a hotspot for Foreign Direct Investments (FDIs). With its vast natural resources, rapidly growing middle class, and increasing economic liberalization, Africa is an attractive destination for investors. According to various reports, the continent has been making significant progress in attracting FDIs in recent years.
Here’s a look at the top 10 African nations attracting the most FDI in 2023, based on available data from the World Investment Report 2024.
Egypt – US$9.841 billion
Egypt has been a key recipient of FDIs in recent years, with major projects in sectors like energy, manufacturing, and real estate. The country attracted $9.841 billion in foreign investments in 2023, mostly from Arab and European nations.
South Africa – US$5.233 billion
South Africa is one of the most developed economies in Africa and has long been a hub for FDIs. In 2023, it received $5.233 billion in foreign investments, primarily from countries like the United States, the United Kingdom, and China.
Ethiopia – US$3.263 billion
Ethiopia’s rapid economic growth and infrastructure development have made it an attractive destination for FDIs. In 2023, the country received $3.263 billion in foreign investments, primarily from China and the United States.
Uganda – US$2.886 billion
Uganda has consistently secured impressive FDI inflows, with 2023 figures nearly matching the previous year’s record. The government’s focus on fostering a business-friendly environment is proving successful.
Senegal – US$2.641 billion
Emerging as a leader in West Africa, Senegal attracted a staggering $2.641 billion in FDI in 2023. This surge is attributed to its rapid economic growth and the recent landmark achievement of initiating oil production at the Sangomar field.
Mozambique – US$2.509 billion
Mozambique’s rich natural resources, including gas, coal, and minerals, continue to attract foreign capital. The country secured $2.509 billion in FDI in 2023, and recent legislative reforms to attract investment are expected to further boost inflows.
Namibia – US$2.345 billion
Namibia has witnessed a significant rise in investment inflows post-pandemic, largely driven by a surge in oil and gas exploration. This sector is expected to be a key driver of FDI in the coming years.
Nigeria – US$1.873 billion
As the largest economy in West Africa, Nigeria has attracted significant FDIs in recent years. In 2023, the country received $1.873 billion in foreign investments, mostly from China, the United States, and the United Kingdom.
Côte d’Ivoire – US$1.753 billion
Boasting the fastest-growing economy in Africa (according to the IMF, at 6.6%), Côte d’Ivoire is a rising star. The country’s openness to foreign investors makes it an attractive destination for various sectors.
Democratic Republic of Congo (DRC) – US$1.635 billion
The Democratic Republic of Congo has seen a steady influx of foreign direct investment (FDI), with a reported figure of $1.635 billion in 2023. This inflow of capital reflects the country’s untapped economic potential, particularly in its natural resource sectors.
Africa is experiencing a positive trend in FDI and the continent’s economic growth trajectory and increasing focus on creating investor-friendly environments are positive signs for the future of FDI in Africa.