Rising Fast: Why the World is Betting on Africa!

Описание: Africa stood out in 2024 as one of the few regions to buck global investment headwinds. Foreign direct investment (FDI) surged by 75%, in sharp contrast to the global 2% decline. Much of this was driven by Egypt’s $35 billion Ras El-Hekma real estate megaproject, but even without it the continent still posted a respectable 12% gain—evidence of growing investor appetite for African opportunities.
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The continent’s share of global FDI flows doubled to 6% in 2024, up from 3% the year before. While modest in absolute terms, this underscores Africa’s rising profile in global capital markets. Yet beneath the headlines, the picture is mixed. Greenfield project values dipped 5% even as the number of projects rose, showing investors are spreading bets across smaller ventures.
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Sector trends reflect shifting investor priorities. Telecom projects nearly doubled in value, driven by Africa’s expanding digital economy and demand for mobile connectivity. In contrast, investment in extractive industries plunged by 48%—a result of lower commodity prices and increased caution around carbon-intensive projects. At the same time, UNCTAD notes that activity is heavily concentrated in real estate, infrastructure, and energy transition-linked projects, leaving development-critical areas like health, education, and water underfunded. This divergence highlights Africa’s challenge: attracting investment not just in high-profile megaprojects, but in sectors most critical to inclusive development.
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The launch of AfCRA, Africa’s upcoming credit rating agency, and AU-led pushes around blended finance may help de-risk these investments. But progress will require more than institutional innovation. UNCTAD stresses the need for stronger public–private pipelines, harmonized regulatory frameworks, and smarter incentives to shift flows from real estate and extractives into SDG-aligned industries. Africa may be capturing attention, but translating momentum into impact depends on turning rising FDI into long-term, broad-based growth.
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Source: UNCTAD