Egypt Hosts UNCTAD Launch as Africa Sees FDI Rebound

The Government of Egypt and the UN Conference on Trade and Development (UNCTAD) jointly launched the World Investment Report 2025 in Cairo today, spotlighting global foreign direct investment (FDI) trends and Egypt’s rising role as a regional investment hub.

The annual report, considered the leading global benchmark on FDI flows and policies, showed global FDI rose 4% in 2024 to $1.5 trillion. However, this apparent growth was inflated by volatile flows through conduit economies. Excluding those, FDI actually declined 11%, marking the second year of contraction amid growing geopolitical and economic uncertainty.

UNCTAD warned of a negative global investment outlook for 2025, highlighting a sharp drop of 25–33% in SDG-related investment in developing countries — particularly in renewable energy, infrastructure, water, and food systems. Only the health sector showed modest growth.

One of the report’s key themes this year is the digital economy. Investment in data centers and fintech is growing fast, but remains highly concentrated in a few regions, reinforcing the global digital divide.

Africa saw a strong rebound in FDI, rising 75% to $97 billion. Egypt led this recovery, accounting for the continent’s highest inflows, driven by the landmark Ras El-Hekma urban development megaproject and major infrastructure investments.

Egypt doubled its project-finance commitments and defied a regional decline in greenfield projects, making it a standout performer in Africa. The country also climbed dramatically in global rankings, rising from 32nd to 9th among the world’s top FDI recipients in 2024.

Dr. Rania Al-Mashat, Minister of Planning and International Cooperation, said Egypt's performance reflects its focus on exports, industry, and private-sector-led growth:

"Egypt’s consistent presence on the investment map highlights our ongoing structural reforms designed to foster productivity, job creation, and quality growth."

Eng. Hassan Elkhatib, Minister of Investment and Foreign Trade, emphasized policy clarity and investor confidence:

"Egypt is creating a transparent, competitive business climate, turning the country into a hub for investment and global connectivity."

UNCTAD’s Investment Research Director, Richard Bolwijn, stressed the importance of international cooperation to support sustainable investment in developing economies.

The launch event included a technical briefing on the report’s findings and a panel discussion with international stakeholders from the private sector, academia, and multilateral organizations.