Egypt FDI: Ranks 9th Globally, Africa Rebounds
Egypt’s foreign direct investment (FDI) impressively climbed to 9th globally in 2024, substantially impacting the African investment landscape. Discover how this investment surge played a pivotal role in driving a 75% rebound in African FDI, according to the latest UN report. While global FDI saw a modest rise, volatile flows skewed the figures; learn how Egypt’s strategic initiatives, notably the large-scale urban growth mega-project at Ras El-Hekma, fueled this growth. This surge in investment, led by Egypt, highlights a shift in African economies. News Directory 3 delivers a thorough analysis of the UN report, examining the factors behind this economic change and the sectors benefiting from the investment rebound. Understand which areas are attracting the most investment.Discover what’s next for Egypt’s position.
Egypt Foreign Direct Investment Surge Drives African Investment Rebound
A UN report revealed Thursday that Egypt’s foreign direct investment (FDI) experienced a meaningful surge in 2024. This increase positioned Egypt as the ninth-largest FDI recipient worldwide and a key factor in the rebound of investment across Africa.
The UN Trade and Development (UNCTAD) World Investment Report 2025 highlighted Egypt’s performance against a backdrop of declining global FDI, excluding volatile financial flows. The report anticipates continued investor uncertainty and a negative global outlook for 2025.
Africa’s FDI inflows jumped 75% to $97 billion in 2024,primarily due to investment in Egypt. This surge elevated Africa’s share of global FDI to 6%, up from 4% the previous year.The continent’s share of developing-country inflows also rose to 11% from 6%. The urban development mega-project at Ras El-Hekma significantly contributed to Egypt’s leading role in this turnaround.
Globally, FDI saw a 4% increase in 2024, reaching $1.5 trillion. However, UNCTAD cautioned that this figure was inflated by volatile flows through conduit economies. Excluding thes flows, global FDI actually declined by 11%.
The report also indicated a decrease of 25-33% in investment within developing countries for sectors aligned with the Enduring Development Goals (SDGs), including infrastructure, renewable energy, water, sanitation, and agrifood systems. The health sector was the onyl area that experienced growth,albeit from a small base.
Richard Bolwijn,director of UNCTAD’s Investment Research Branch,said that the findings call for renewed efforts to mobilize private investment for sustainable development,especially in economies facing structural constraints.
While Africa saw an overall FDI rebound, the report showed a mixed picture across the continent. Most countries experienced a decrease in announced greenfield projects, both in number (5%) and value (37%). Cross-border mergers and acquisitions also turned negative, resulting in net divestments of $1.5 billion, compared to net investments of $9.5 billion in 2023.
Though, the value of announced international project-finance deals in Africa increased by 15%, driven by a megaproject in Egypt, even as the number of such deals decreased by 3%.
Egypt jumped from 32nd to 9th place among global FDI recipients, with project-finance commitments doubling due to large-scale investments in energy and transport infrastructure. The country also bucked the continent-wide trend of declining announced greenfield projects. North Africa, led by Egypt, was identified as the primary driver of FDI growth on the continent.
What’s next
egypt aims to solidify its position in the global investment landscape through ongoing structural reforms and policies designed to foster a competitive and clear business climate.