Analysts have often used Foreign Direct Investments (FDI) as a measure to track the growth of a country's economy as it portrays convenience and trust for aspiring investors.
According to the World Investment Report 2024 released by the United Nations Trade and Development (UNCTAD), global FDI dropped by 2% to $1.3 trillion in 2023 amid the economic slowdown and rising geopolitical tensions.
The report also noted that issues related to crises, protectionist policies and regional realignments were responsible for the disruptions currently affecting the smooth running of economies across the world.
African countries were not left behind in the slow FDI growth witnessed in 2023.
8 African countries that attracted the most foreign investments in 2023
The table below shows the FDI received by the top eight African countries in 2023 compared to the FDI received in 2022:
| Country | 2022 | 2023 | |
|---|---|---|---|
| 1 | Egypt | US$11.4 billion | US$9.841 billion |
| 2 | South Africa | US$9.2 billion | US$5.2 billion |
| 3 | Ethiopia | US$3.6 billion | US$3.263 billion |
| 4 | Uganda | US$2.9 billion | US$2.886 billion |
| 5 | Senegal | US$2.58 billion | US$2.641 billion |
| 6 | Mozambique | US$2.4 billion | US$2.509 billion |
| 7 | Namibia | US$1.07 billion | US$2.345 billion |
| 8 | Nigeria | US$895 million | US$1.873 billion |
From the table, Senegal, Mozambique, Namibia and Nigeria all grew their respective FDI in 2023 compared to figures recorded in 2022.
However, a breakdown of FDI growth in the different regions showed that for Eastern and Southern Africa, FDI in the common market grew by 14% to $22 billion.
FDI inflow also increased in the Southern African Development Community (jumping to $10 billion), the West African Economic and Monetary Union (increased to $5.2 billion) and the East African Community (up 9%, to $3.8 billion).
An analysis of the largest investors also showed that European investors took the lead as the largest holders of FDI stock in Africa, with the United Kingdom topping the list ($60 billion), followed by France ($54 billion) and the Netherlands ($54 billion).