African Investment Trends Shift Amid Declining FDI Flows
Foreign direct investment drops to $70 billion while project numbers rise across Africa.
1FDI Decline in 2025
Foreign direct investment into Africa reached approximately $70 billion in 2025, representing a 26% decline from the $94 billion recorded in 2024. Despite this drop, the figure remains among the highest levels observed since 1990. The previous year's performance was bolstered by several exceptionally large deals that skewed annual totals upward.
2Shift Toward Smaller Projects
While the total value of newly announced investment projects fell by nearly one-third, the actual number of projects increased. This trend indicates that investors are shifting their strategies toward backing a higher volume of smaller-scale initiatives. Capital remains heavily concentrated in key sectors including energy, infrastructure, and critical mineral extraction projects.
3Leading Investment Destinations
Egypt emerged as the top recipient of foreign investment, securing $15.5 billion in total inflows. Guinea followed with $5.7 billion, while Mozambique attracted $5.7 billion. Nigeria and Ethiopia also maintained their status as primary destinations for international capital, with investors from Asian and Gulf markets playing increasingly prominent roles in these regions.
4Agricultural Growth in Guinea
Guinea is focusing on domestic production to reduce import reliance, specifically in the poultry sector. Maize output rose 33%, increasing from 569,000 tonnes in 2024–2025 to nearly 757,000 tonnes in 2025–2026. Local farmers like Djiba Tounkara are now cultivating 15 hectares, aiming to replace imports currently sourced from Mali and Côte d'Ivoire.
5Strengthening Local Supply Chains
A new agricultural initiative aims to develop 500 hectares of farmland by covering 70% of associated costs. In Conakry, a factory currently produces 1,500 tonnes of poultry feed monthly, with maize comprising half the mixture. Reliable local supply chains are expected to lower transport costs and mitigate exposure to volatile international commodity prices.
6Visa Costs Impact Nigerians
Nigerians face significant financial strain due to high visa application fees and associated travel costs. The Ministry of Foreign Affairs reports that citizens spend nearly $56 million annually on these processes. Entrepreneurs like Olisa Ogbechie have lost non-refundable fees, such as $130 per application, following rejections without clear explanations from foreign authorities.
7Barriers to Global Mobility
Visa refusals are frequently linked to concerns regarding an applicant's ability to financially support themselves while abroad. Despite these systemic barriers and the high financial risk, the motivation to seek employment or skill-building opportunities overseas remains strong among the Nigerian population. Many individuals continue to pursue international paths for career advancement.
8Domestic Economic Policy Response
President Bola Tinubu's government is attempting to counter migration pressures by expanding local employment and digital skills training. The 'Hire from Nigeria' initiative serves as a primary vehicle for this strategy. The ultimate challenge for African nations remains transforming these diverse investments into sustainable local jobs and generating greater value-added economic activity.
Original article: Africanews — African Investment Trends Shift Amid Declining FDI Flows