Decoding African FDI Trends: Where Capital Flows and Why It Matters for Enterprise Builders
Foreign direct investment (FDI) into Africa surged 75% to $97 billion in 2025, reaching an all-time high and representing 6% of global FDI, driven by private enterprise in renewables and tech as players like Sasol and Moniepoint attract capital that fuels industrial expansion and market dominance amid a resilient economic outlook of 3.9% growth. This trend highlights Africa’s evolving appeal as a high-growth frontier, where FDI not only injects capital but also transfers technology and creates ecosystems for local innovators to thrive, turning emerging markets into hubs of enterprise resilience despite global headwinds.
FDI flows have shifted dramatically, with renewables accounting for 50% of the increase ($48.5B), up from 15% in 2024, per UNCTAD’s 2025 World Investment Report. Egypt led with $20B from urban development projects, while Nigeria drew $10B in fintech and manufacturing, where Flutterwave’s integrations processed $12B in transactions. Kenya’s $8B focused on logistics like Jumia’s expansions, serving 12 million users, and South Africa’s $7B targeted renewables, with Sasol’s solar projects creating 6,000 jobs. These movements reflect enterprise-led diversification, with VCs like Helios deploying $1.5B annually into scalable platforms bridging Africa’s 85 million unbanked SMEs.
The data reveals stark regional patterns: North Africa captured 30% ($29.1B), driven by Egypt’s mega-projects, while sub-Saharan Africa took 50% ($48.5B) through West Africa’s fintech boom (35% of flows, $33.95B) and East Africa’s logistics innovations (25%, $24.25B). Southern Africa’s 20% ($19.4B) emphasized renewables, with Sasol’s expansions adding 10% to GDP contributions. Central and North Africa’s 15% ($14.55B) signals green hydrogen potential in Morocco, up 20% from 2024.
African FDI Flows By Region 2025
In summary, the $97 billion FDI surge in 2025 marks a pivotal moment for Africa’s private enterprise landscape, with renewables and tech sectors accounting for 50% of flows and regional variations underscoring the continent’s diverse investment hotspots. North Africa’s 30% share ($29.1B) through mega-projects, sub-Saharan Africa’s 50% ($48.5B) via fintech and logistics, and the overall 75% growth from 2024 highlight the enduring appeal of scalable platforms and industrial innovations.
