Ahmed Kamel – Egypt Daily News
Egypt attracted $11 billion in foreign direct investment (FDI) in 2025, retaining its position as Africa’s leading investment destination for the fourth consecutive year, according to a United Nations Conference on Trade and Development (UNCTAD) report published in January 2026.
The findings underscore Egypt’s resilience in drawing capital despite uneven and often volatile investment flows across the African continent. While overall FDI into Africa remained concentrated in a small number of economies, Egypt continued to capture the largest share, supported by large-scale projects in energy, infrastructure, manufacturing, and logistics.
UNCTAD attributed Egypt’s strong performance to a combination of structural reforms, strategic location, and sustained public and private investment in priority sectors. Energy remained a key driver, particularly renewables, natural gas, and power infrastructure, alongside transport, industrial zones, and large real estate and construction projects. These sectors have benefited from government-backed initiatives aimed at positioning Egypt as a regional hub for production, trade, and energy distribution.
The report also highlighted Egypt’s role as a gateway between Africa, the Middle East, and Europe, with its access to global shipping routes through the Suez Canal continuing to enhance its appeal to multinational investors. Ongoing investments in economic zones, including the Suez Canal Economic Zone, were cited as contributing factors, offering incentives, modern infrastructure, and proximity to export markets.
Despite Egypt’s strong showing, UNCTAD noted that FDI across Africa remains highly concentrated, with a handful of countries accounting for the majority of inflows. Many smaller and less diversified economies continue to struggle to attract long-term investment, particularly in manufacturing and value-added industries, due to infrastructure gaps, political risk, and limited access to finance.
The report cautioned that while headline investment figures remain robust for top destinations such as Egypt, sustained growth will depend on global economic conditions, geopolitical stability, and the ability of host countries to deepen local value chains. Rising interest rates, global trade fragmentation, and regional conflicts continue to pose risks to investment momentum across developing economies.
For Egypt, however, UNCTAD’s assessment suggests a degree of continuity and confidence among international investors. By maintaining its lead for a fourth straight year, the country has reinforced its status as Africa’s primary FDI destination, at a time when competition for global capital is intensifying and investment decisions are increasingly shaped by supply chain security, energy transition goals, and regional market access.
