Egypt Tops African Nations in Foreign Direct Investment in 2023

The United Nations Conference on Trade and Development (UNCTAD) has announced that Egypt leads the list of African countries with the highest rates of foreign direct investment (FDI) for 2023. This revelation was made in the 2024 World Investment Report, as reported by Business Insider, an Africa-focused news platform based in London and Pretoria.

According to the report, Egypt attracted an impressive $9.841 billion in FDI in 2023, securing its top position among African nations. South Africa followed, ranking second with $5.2 billion in FDI, which marks a significant decrease from the $9.2 billion recorded in 2022.

The global landscape for foreign direct investment saw a decline of 2% to $1.3 trillion in 2023. This downturn is attributed to the economic slowdown and escalating geopolitical tensions. UNCTAD's report highlighted several factors contributing to the current disruptions affecting global economies, including crises, protectionist policies, and regional realignments.

Despite the challenging global economic environment, Egypt's ability to attract substantial FDI underscores its economic resilience and investor confidence. In contrast, the Democratic Republic of Congo was noted among the lowest ten countries in Africa for FDI, attracting $1.635 billion.

Egypt's leading position in attracting foreign direct investment is a testament to its strategic economic reforms and favorable investment climate. Over the past decade, the Egyptian government has implemented numerous initiatives to enhance the business environment, including regulatory reforms, infrastructure development, and investment in key sectors such as energy, real estate, and technology.