Global foreign direct investment into the Common Market for Eastern and Southern Africa (COMESA) surged to a record $65 billion in 2024, marking a 154% year-on-year rise amid a generally weaker global investment climate. This finding comes from the first COMESA Investment Report 2025, produced in collaboration by UNCTAD and the COMESA Regional Investment Agency (RIA).
A central driver of this surge is the Ras El-Hekma mega-project in Egypt, which the report cites as a major catalyst for the elevated inflows. Even when this project is excluded, COMESA’s FDI would have still grown by a solid 16%, signaling a broader uplift in investor confidence across the region rather than a single-project anomaly.
COMESA’s share of global FDI more than doubled, rising from 2% to 4%. Its portion of inflows into developing economies increased from 3% to 7%. The bloc accounted for about 67% of total FDI into Africa, underscoring its rising prominence as an investment destination.
Investors from Europe and North America remained the dominant sources of FDI stock within the region, with the Netherlands and the United States leading, a sign of sustained interest from advanced economies.
A key highlight of the report is the sharp uptick in international project finance (IPF), which nearly doubled to $79 billion—roughly 80% of Africa’s total IPF value. The expansion is largely driven by large-scale renewable energy developments, grid expansion, and major construction projects in countries such as Egypt, Tunisia, Rwanda, and Malawi.
Greenfield investments also held strong, totaling $77 billion in 2024—the second-highest level on record—with COMESA capturing about two-thirds of all greenfield investment value across Africa.
Nonetheless, the report notes a high degree of concentration: five countries—Egypt, Ethiopia, Uganda, the Democratic Republic of the Congo (DRC), and Kenya—together accounted for about 90% of COMESA’s total FDI. Intra-COMESA investment remains relatively limited, representing only 3% of greenfield project numbers and 6% of total project value.
Sector-by-sector trends show notable variation. Construction investment surged nearly fivefold, led by activity in Egypt. Basic metals investment grew 71%, and energy and gas supply rose 22%, maintaining its position as the top FDI sector. By contrast, extractive industries dropped by 61%, and ICT investment declined by 55% after a strong 2023.
Investments aligned with the Sustainable Development Goals (SDGs) yielded mixed results. Renewable energy investment expanded by 67%, reinforcing COMESA’s emergence as a hub for energy-transition projects. Health and education investments jumped by 130%, albeit from a small base. Conversely, agrifood investments fell by 34%, investments in water and sanitation (WASH) declined by 76%, and transport-related infrastructure investment fell by 54%.
The report urges policymakers to pursue more inclusive and diversified investment across the region, expanding beyond a few dominant economies. It stresses accelerating industrialisation through value-added manufacturing, scaling up digital infrastructure, and boosting investment in human capital using innovative financing mechanisms. Strengthening data-reporting systems is highlighted as essential for evidence-based policymaking and sustainable development.
